Mortgage Rates News

By James Brooks

Monday’s bond market has opened in positive territory, erasing part of Friday’s intra-day losses. The stock markets are mixed with the Dow down 7 points and the Nasdaq up 4 points. The bond market is currently up 6/32, but due to significant selling Friday afternoon, we will still see an increase of approximately .250 of a discount point if comparing to Friday’s morning pricing. If your lender made a sizable increase to rates Friday afternoon, you should see little change in this morning’s pricing or possibly even an improvement, depending on how much of an upward revision was made.

There is nothing of relevance scheduled for release today that has the potential to influence mortgage rates. The rest of the week brings us the release of three reports that do, in addition to the minutes from the most recent FOMC meeting and a congressional speaking engagement by Fed Chairman Bernanke. Only one of the economic reports is considered to be highly important to the markets and mortgage rates, but the others do carry enough significance to influence mortgage rates if they show a wide variance from forecasts.

Tomorrow also has nothing of importance scheduled, so look for stock movement to heavily influence bond trading and mortgage rates. Stock gains will probably pressure bonds and cause mortgage rates to move higher. If the major stock indexes show losses during the first couple days, we may see bonds thrive and mortgage rates remain unchanged or move slightly lower. It will also be interesting to see if last week’s pattern of afternoon selling in bonds carries into this week. Early gains in bonds this morning raises caution that it may. Therefore, proceed cautiously if still floating an interest rate and closing in the immediate future as the afternoon selling, for the most part, has been stronger than the morning buying. In other words, the afternoon revisions have been higher than the morning improvement s to rates.

Wednesday has three events that could affect mortgage rates. They include April’s Existing Home Sales report and Fed Chairman Bernanke’s appearance in front of Joint Economic Committee of Congress, both at 10:00 AM ET. That will be followed by the release of the minutes from the last FOMC meeting at 2:00 PM ET.

Overall, I believe Wednesday will be the most important day of the week for mortgage rates, although Friday should be active also as it has the most important economic report and will have an early bond market closing ahead of next Monday’s holiday. I don’t think we will see as much movement in rates that we saw last week, however, it is still recommended to maintain contact with your mortgage professional if you have not locked an interest rate yet since it could still be a fairly active week.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

By James Brooks

This week brings us the release of three pieces of relevant economic news in addition to the minutes from the most recent FOMC meeting and a speaking engagement with Fed Chairman Bernanke and a congressional committee. Only one of the economic reports is considered to be highly important to the markets and mortgage rates, but the others do carry enough significance to influence mortgage rates if they show a wide variance from forecasts.

Today and Tuesday have nothing of importance scheduled, so look for stock movement to heavily influence bond trading and mortgage rates. Stock gains will probably pressure bonds and cause mortgage rates to move higher. If the major stock indexes show losses during the first couple days, we may see bonds thrive and mortgage rates remain unchanged or move slightly lower.

The National Association of Realtors will give us their Existing Home Sales report at 10:00 AM ET Wednesday. This data tracks resales of existing homes in the U.S. during April, giving us a measurement of housing sector strength. This type of data is relevant because a weakening housing sector makes a broader economic recovery less likely. Current forecasts are calling for an increase in home sales between March and April. Ideally, the bond market would prefer to see a decline, indicating housing sector weakness. A large increase in sales could lead to bond weakness and a small increase in mortgage rates Wednesday morning since a strengthening housing sector raises optimism about broader economic growth.

Also late Wednesday morning will be testimony from Fed Chairman Bernanke to the Joint Economic Committee of Congress. He will be updating them on the status of the economy and the Fed’s outlook for future growth and monetary policy. This will be watched closely and is one of those speaking engagements that can cause considerable movement in the financial markets and mortgage rates.

Furthermore, the minutes of the last FOMC meeting will be released Wednesday afternoon. Market participants will be looking for how Fed members voted during the last meeting and any comments about inflation concerns in the economy and economic growth. The goal is to form opinions about the Fed’s next move regarding interest rates and their current bond-buying program (QE3). Since the minutes will be released at 2:00 PM ET, if there is a market reaction to them it will be evident during afternoon trading Wednesday.

April's New Home Sales report is the sister report of the Existing Home Sales and will be released late Thursday morning. It gives us a similar measurement of housing sector strength and future mortgage credit demand, but tracks a much smaller portion of housing sales than Wednesday's report does. Actually, it is the least important release of the week and probably will not have much of an impact on mortgage pricing unless it shows a sizable variance from forecasts. It is expected to show gains in sales from March's level, meaning the new home portion of the housing sector also strengthened last month.

Friday has the week's most important economic report with April's Durable Goods Orders being posted. This data gives us an indication of manufacturing sector strength by tracking orders at U.S. factories for big-ticket products. These are items made with an expected life span of three or more years. It is currently expected to show an increase in new orders of approximately 1.6%, indicating the manufacturing sector remained strengthened a little last month. That would be relatively bad news for the bond market and mortgage rates, but this data is known to be quite volatile. Therefore, a small variance from forecasts would likely have little impact on Friday's mortgage rates.

Overall, I believe Wednesday will be the most important day for rates, although Friday should be active also as it will be shortened due to the early close ahead of the Memorial Day holiday and has the most important report of the week. Still, Wednesday’s economic data and Chairman Bernanke’s testimony in the morning and FOMC minutes in the afternoon means we could see a couple changes to mortgage rates that day. I suspect that Tuesday will be the calmest day of the week. There is nothing to be concerned with Today, but strong selling in bonds late Friday means there is a fairly large increase in mortgage rates waiting if your lender did not make an upward revision during afternoon trading. I don’t think we will see as much movement in rates that we saw last week, however, it is still recommended to maintain contact with your mortgage professional if you have not locked an interest rate yet.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

By James Brooks

Friday’s bond market has opened in negative territory due to stronger than expected economic news and more stock gains. The major stock indexes are showing early strength as we head into the weekend with the Dow up 55 points and the Nasdaq up 17 points. The bond market is currently down 10/32, erasing some of yesterday’s improvements. Yesterday’s gains actually started to diminish during afternoon trading, maintaining the pattern of the week. This should translate into an increase of approximately .250 of a discount from yesterday’s morning pricing. If your lender revised upward late yesterday, then you should see less of an increase in this morning’s rates.

There were two pieces of economic data posted this morning. The first was May's preliminary reading to the University of Michigan's Index of Consumer Sentiment that came in at 83.7. This was much higher than analysts had predicted and was the highest reading since July 2007. That means that surveyed consumers were much more optimistic about their own financial situations this month than many had thought. Since that means they are more apt to spend money and make large purchases, the data is negative for the bond market and mortgage rates.

The second report of the morning was April’s Leading Economic Indicators (LEI) at 10:00 AM ET. It gave us similar results with a larger than forecasted increase. The Conference Board announced that their LEI rose 0.6% last month when analysts were expecting to see a 0.3% rise. That indicates that the data is predicting a moderate rate of economic growth over the next several months, making it favorable for stocks and bad news for bonds.

Next week brings us a couple of relevant economic reports for the markets to digest in addition to the minutes from the last FOMC meeting. The highlight of the week will be Fed Chairman Bernanke’s congressional testimony on the Fed’s economic outlook that will likely be a market mover. There is nothing of importance scheduled for Monday, so look for weekend news and stock movement to drive bond trading and mortgage pricing until we get to the middle part of the week.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

By James Brooks

Thursday’s bond market has opened in positive territory following a batch of favorable economic reports. The stock markets are mixed but relatively calm during early trading with the Dow down 7 points and the Nasdaq up 3 points. The bond market is currently up 12/32, which should improve this morning’s mortgage rates by approximately .125 of a discount point if comparing to yesterday’s morning pricing. As we saw Tuesday, the bond market weakened during afternoon trading yesterday, causing some lenders to revise rates upward. Those losses are preventing more of an improvement in this morning’s pricing than today’s opening strength would usually create.

April's Consumer Price Index (CPI) was the most important of today’s three economic reports. The Labor Department announced early this morning that the overall CPI reading fell 0.4% last month while the core reading rose 0.1%. Both readings were weaker than what analysts were expecting (-0.2% and +0.2% respectively), indicating inflationary pressures were softer at the consumer level of the economy than many had thought. That makes both good news for the bond market and mortgage pricing.

They also said that 360,000 new claims for unemployment benefits were filed last week, up considerably from the revised total of 328,000 of the previous week. Since this was a sizable upward move and was much higher than the 330,000 initial claims that was forecasted, we should also consider this good news for mortgage rates as it points toward a weakening employment sector.

The final report of the day was April's Housing Starts. It revealed a 16.5% drop in new home construction starts last month that was much weaker than analysts were expecting to see. That would indicate weakness in the new home part of the housing sector. However, a secondary reading that tracks new permits for future construction starts showed the highest number since June 2008. This data leads us to believe that April was a bad month for new homes, but May and June will likely be much stronger. The conflicting readings offset each other, leaving the other two reports to drive bond trading and mortgage pricing this morning.

Tomorrow has the remaining two pieces of economic data scheduled for release. They both will come during late morning trading tomorrow and neither is considered to be highly important. The first is May's preliminary reading to the University of Michigan's Index of Consumer Sentiment just before 10:00 AM ET. This index measures consumer willingness to spend, which relates to consumer spending. If consumers are more confident in their own financial situations, they are more apt to make large purchases in the near future. This report usually has a moderate impact on the financial markets though, because it is not exactly factual data. It is expected to show a reading of 78.5, which would be an increase from April’s final reading of 76.4, indicating consumers are more confident and more likely to spend than they were last month. If it shows a large decline in consumer confidence, bond prices could rise and mortgage rates would likely move slightly lower because waning conf idence means consumers are less apt to make a large purchase in the near future.

The week closes with the release of April's Leading Economic Indicators (LEI) at 10:00 AM ET. This Conference Board report attempts to predict economic activity over the next three to six months. It is expected to show a 0.3% increase from March's reading, meaning that economic activity is likely to strengthen slightly over the next few months. A decline would be good news for the bond market and mortgage rates, while an increase could cause mortgage rates to inch higher tomorrow.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

By James Brooks

Wednesday’s bond market has opened will in positive territory due to weaker than expected economic news. The stock markets are showing relatively minor losses with the Dow down 33 points and the Nasdaq down 3 points. The bond market is currently up 16/32, but due to heavy selling late yesterday, we will likely see little change in this morning’s mortgage rates if comparing to yesterday’s early pricing. If your lender revised upwards during afternoon trading yesterday as many did, you should see the increase reversed in this morning’s rates, putting you close to Tuesday’s morning pricing.

The Labor Department gave us the first of this morning’s two relevant economic reports with the release of April's Producer Price Index (PPI) at 8:30 AM ET. They announced a 0.7% decline in the overall reading and a 0.1% increase in the less volatile core data. The overall reading was weaker than the 0.5% drop that was expected and the largest monthly decline since February 2010. The more important core reading that excludes more volatile food and energy costs matched forecasts. Still, the data should be considered favorable for the bond market because the large decline indicates that inflation is still not a threat to our economy or bond prices. Weaker economic conditions with low inflation make long-term securities such as mortgage-related bonds more attractive to investors and helps keep mortgage rates low.

April's Industrial Production report was posted at 9:15 AM ET this morning, revealing a 0.5% decline in output at U.S. factories, mines and utilities. This is also good news for the bond and mortgage markets because it was a larger than forecasted drop in output, hinting at manufacturing sector weakness.

There are three pieces of economic data set for release tomorrow morning, beginning with April's Consumer Price Index (CPI) will also be posted at 8:30 AM ET. It is the sister report of today’s PPI report, but measures inflationary pressures at the more important consumer level of the economy. These results will be watched closely and could lead to more volatility in the bond market and mortgage pricing if they show any surprises. Current forecasts are calling for a 0.2% decline in the overall index and a 0.2% rise in the core data reading.

The second release of the day will be April's Housing Starts. This data measures housing sector strength and mortgage credit demand by tracking newly issued permits and actual starts of new home construction. It is expected to show a drop in new starts from March's reading, hinting at housing sector weakness. However, since this report is not considered to be of high importance to the bond market, it likely will have little impact on mortgage rates unless it varies greatly from forecasts, especially with a key measurement of inflation being posted at the same time.

Lastly, we will also get the weekly unemployment update from the Labor Department early tomorrow morning. They are expected to announce that 330,000 new claims for unemployment benefits were filed last week. This would be an increase from the previous week’s 323,000 initial claims. The higher the number of new claims, the better the news it is for the bond market and mortgage rates. However, since this data tracks only a single week’s worth of initial filings, it usually takes a wide variance from forecasts for it to directly affect mortgage rates.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

By James Brooks

Tuesday’s bond market has opened up slightly even though stocks are showing early strength. The major stock indexes are showing noticeable gains with the Dow up 81 points and the Nasdaq up 24 points. The bond market is currently up 3/32, which should improve this morning’s mortgage rates by approximately .125 of a discount point.

We have a seen a sizable increase in bond yields over the past two weeks, with the benchmark 10-year Treasury Note moving from 1.63% at the beginning of this month to 1.91% this morning. Since mortgage rates tend to follow bond yields, this means we have seen a spike in interest rates also. Hopefully the lock advice has been heeded during the past couple weeks. At 1.91%, I think there is still a little room for yields and mortgage rates to move higher, but the risk is diminishing in my opinion. I still look at 2.00% as an important threshold for the 10-year, so as long as we gradually move higher and not quickly jump above that level, I may take a less conservative stance towards locking or floating a rate in the near future.

There was nothing of importance posted this morning. April's Producer Price Index (PPI) will be released at 8:30 AM ET tomorrow. The PPI helps us measure inflationary pressures at the producer level of the economy. If this report reveals weaker than expected readings, indicating inflation is not a concern at the producer level, we should see the bond market improve tomorrow. The overall index is expected to fall 0.5%, while the core data that excludes more volatile food and energy prices has been forecasted to rise 0.1%. A decline in the core data would be ideal for mortgage shoppers because inflation is the number one nemesis for long-term securities such as mortgage-related bonds. As inflation rises, longer-term securities become less appealing to investors since inflation erodes the value of those securities’ future fixed interest payment. That is why the bond market tends to thrive in weaker economic conditions with low levels of inflation.

The second report of the day will be April's Industrial Production at 9:15 AM ET tomorrow. It measures manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to show a 0.2% decline in production, indicating that manufacturing activity is growing. A larger than expected decrease in output would be good news for the bond market and mortgage rates because it would indicate that the manufacturing sector is not as strong as thought. This report is considered to be moderately important, so it will likely need to show unexpected strength or weakness to cause movement in mortgage rates. The PPI report will probably be the biggest influence on bond trading and mortgage rates tomorrow.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

By James Brooks

Monday’s bond market has opened the week in negative territory following unfavorable economic news. The stock markets are mixed with the Dow down 33 points and the Nasdaq up 1 point. The bond market is currently down 7/32, which will likely push this morning’s mortgage rates higher by approximately .250 - .375 of a discount point if comparing to Friday’s morning pricing.

The Commerce Department gave us this morning’s only relevant economic data, but it was one of the more important reports we see each month. At 8:30 AM ET, they announced that April’s retail level sales rose 0.1% when analysts were expecting to see a 0.3% decline. A secondary reading that excludes more volatile auto sales also showed stronger than forecasted sales (-0.1% vs -0.2%). These readings indicate that consumers spent more last month than many had thought, making them bad news for the bond market and mortgage rates since they indicate higher levels of economic activity.

Tomorrow is the only day that has nothing of importance scheduled for release, but the rest of the week brings us six more economic reports that may have the potential to influence mortgage rates. Those reports include two key inflation readings the middle part of the week that are highly important to the bond market. We saw plenty of movement in rates last week despite the lack of factual economic reports. Unfortunately for mortgage shoppers, they moved higher and this week may not be any different unless the data shows much weaker than thought economic activity. Therefore, please proceed cautiously as this could be another ugly week for rates if the data gives us stronger than expected results.

Overall, it is likely going to be an active week for the financial and mortgage markets. Today or Thursday will probably end up being the most important day for mortgage rates, but we could see noticeable movement in rates multiple days this week. The lightest day will likely be tomorrow unless it is an overly volatile day for stocks. Accordingly, I strongly recommend maintaining contact with your mortgage professional if still floating an interest rate and closing in the near future.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

By James Brooks

Monday’s bond market has opened the week in negative territory following unfavorable economic news. The stock markets are mixed with the Dow down 33 points and the Nasdaq up 1 point. The bond market is currently down 7/32, which will likely push this morning’s mortgage rates higher by approximately .250 - .375 of a discount point if comparing to Friday’s morning pricing.

The Commerce Department gave us this morning’s only relevant economic data, but it was one of the more important reports we see each month. At 8:30 AM ET, they announced that April’s retail level sales rose 0.1% when analysts were expecting to see a 0.3% decline. A secondary reading that excludes more volatile auto sales also showed stronger than forecasted sales (-0.1% vs -0.2%). These readings indicate that consumers spent more last month than many had thought, making them bad news for the bond market and mortgage rates since they indicate higher levels of economic activity.

Tomorrow is the only day that has nothing of importance scheduled for release, but the rest of the week brings us six more economic reports that may have the potential to influence mortgage rates. Those reports include two key inflation readings the middle part of the week that are highly important to the bond market. We saw plenty of movement in rates last week despite the lack of factual economic reports. Unfortunately for mortgage shoppers, they moved higher and this week may not be any different unless the data shows much weaker than thought economic activity. Therefore, please proceed cautiously as this could be another ugly week for rates if the data gives us stronger than expected results.

Overall, it is likely going to be an active week for the financial and mortgage markets. Today or Thursday will probably end up being the most important day for mortgage rates, but we could see noticeable movement in rates multiple days this week. The lightest day will likely be tomorrow unless it is an overly volatile day for stocks. Accordingly, I strongly recommend maintaining contact with your mortgage professional if still floating an interest rate and closing in the near future.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

By James Brooks

This week brings us the release of seven economic reports that may have the potential to influence mortgage rates. There is data scheduled to be posted four of the five days, including Monday. We saw plenty of movement in rates last week despite the lack of factual economic reports. Unfortunately for mortgage shoppers, they moved higher and this week may not be any different. Therefore, please proceed cautiously as this could be another ugly week for rates if the data gives us stronger than expected results.

The first piece of data this week is April's Retail Sales at 8:30 AM ET Monday morning. This is an extremely important report for the financial markets since it measures consumer spending. Consumer spending makes up over two-thirds of the U.S. economy, so this data can have a pretty significant impact on the markets. Current forecasts are calling for a 0.3% decline in sales from March to April. A weaker than expected level of sales should push bond prices higher and mortgage rates lower Monday morning as it would signal that economic activity may not be as strong as thought. However, an unexpected increase could renew theories of economic growth that would lead to more stock buying and bond selling that would push mortgage rates higher.

There is nothing of relevance scheduled for Tuesday, but Wednesday has two reports that we will be watching. April's Producer Price Index (PPI) is the first at 8:30 AM ET. It helps us measure inflationary pressures at the producer level of the economy. If this report reveals weaker than expected readings, indicating inflation is not a concern at the producer level, we should see the bond market improve. The overall index is expected to fall 0.5%, while the core data that excludes more volatile food and energy prices has been forecasted to rise 0.1%. A decline in the core data would be ideal for mortgage shoppers because inflation is the number one nemesis for long-term securities such as mortgage-related bonds. As inflation rises, longer-term securities become less appealing to investors since inflation erodes the value of those securities’ future fixed interest payment. That is why the bond market tends to thrive in weaker economic conditions with low levels of infl ation.

The second report of the day Wednesday is April's Industrial Production at 9:15 AM ET. It measures manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to show a 0.2% decline in production, indicating that manufacturing activity is growing. A larger than expected decrease in output would be good news for the bond market and mortgage rates because it would indicate that the manufacturing sector is not as strong as thought. This report is considered to be moderately important, so it will likely need to show unexpected strength or weakness to cause movement in mortgage rates. The PPI report will probably be the biggest influence on bond trading and mortgage rates Wednesday.

April's Consumer Price Index (CPI) will also be posted at 8:30 AM ET Thursday. It is the sister report of Wednesday’s PPI report, but measures inflationary pressures at the more important consumer level of the economy. These results will be watched closely and could lead to significant volatility in the bond market and mortgage pricing if they show any surprises. Current forecasts are calling for a 0.2% decline in the overall index and a 0.2% rise in the core data reading. As with the PPI, the core data is the more important of the two readings and will help dictate mortgage rate direction.

Also early Thursday will be the release of April's Housing Starts. This data measures housing sector strength and mortgage credit demand by tracking newly issued permits and actual starts of new home construction. It is expected to show a drop in new starts from March's reading, hinting at housing sector weakness. However, since this report is not considered to be of high importance to the bond market, it likely will have little impact on mortgage rates unless it varies greatly from forecasts, especially with a key measurement of inflation being posted at the same time.

The last two pieces of data come late Friday morning. May's preliminary reading to the University of Michigan's Index of Consumer Sentiment will be released just before 10:00 AM ET Friday. This index measures consumer willingness to spend, which relates to consumer spending. If consumers are more confident in their own financial situations, they are more apt to make large purchases in the near future. This report usually has a moderate impact on the financial markets though, because it is not exactly factual data. It is expected to show a reading of 78.5, which would be an increase from April’s final reading, indicating consumers are more confident and more likely to spend than they were last month. If it shows a large decline in consumer confidence, bond prices could rise and mortgage rates would move slightly lower because waning confidence means consumers are less apt to make a large purchase in the near future.

The week’s calendar closes with the release of April's Leading Economic Indicators (LEI) at 10:00 AM ET Friday. This Conference Board report attempts to predict economic activity over the next three to six months. It is expected to show a 0.3% increase from March's reading, meaning that economic activity is likely to strengthen slightly over the next few months. A decline would be good news for the bond market and mortgage rates, while an increase could cause mortgage rates to inch higher Friday.

Overall, it is likely going to be an active week for the financial and mortgage markets. I am predicting Monday or Thursday will be the most important day for mortgage rates, but we could see noticeable movement in rates multiple days this week. The lightest day will likely be Tuesday unless it is an overly volatile day for stocks. Accordingly, I strongly recommend maintaining contact with your mortgage professional if still floating an interest rate and closing in the near future.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

By James Brooks

Friday’s bond market has opened in negative territory with nothing left to drive trading other than a generally negative tone. The stock markets are mixed with the Dow down 13 points and the Nasdaq up 11 points. The bond market is currently down 6/32, which will likely push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point.

We saw some weakness in the bond market late yesterday after the results of the 30-year Bond auction were posted. The auction didn’t go overly well or weak with most of the indicators we use to gauge investor demand showing an average or slightly below average level of interest. This wasn’t the sole reason we saw the broader bond market weaken yesterday afternoon, but it did prevent bonds from moving higher.

There is no relevant economic data being released today, but we did have a speech from Fed Chairman Bernanke mid-morning. He is speaking at a Fed banking conference in Chicago and hasn’t said anything notable as of yet. Most of the content has been about regarding banking and equity-related markets. There has not been much said about our economy of the global financial issues, so we have not seen the bond or mortgage markets react to his words. At least not yet.

Next week is pretty busy in terms of economic reports scheduled that can influence mortgage rates. There is relevant data coming four of the five days, including a key measurement of consumer spending early Monday morning. This is in contrast to this week where we had no monthly or quarterly economic reports to drive bond trading and mortgage rates yet we still saw movement. It is going to be an interesting week, so look for details in Sunday’s weekly preview.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.