A RECENT SAMPLE OF OUR DAILY REPORT!!!
(current subscribers receive today’s report minutes after it is posted)
WEDNESDAY, MAY 2, 2018
Wednesday’s bond market has opened flat as traders await this afternoon’s FOMC meeting results. The major stock indexes are mixed but calm with the Dow down 51 points and the Nasdaq up 19 points. The bond market is currently down 1/32 (2.97%), which should keep this morning’s mortgage rates close to Tuesday’s early levels.
April’s ADP Employment report was posted at 8:15 AM ET this morning, revealing 204,000 new private-sector jobs during the month. This was softer than the 225,000 jobs that was forecasted and March’s number was revised lower by 13,000 private payrolls. That allows us to consider the data favorable for bonds and mortgage rates. Unfortunately, traders are more interested in this afternoon’s event.
We have the FOMC meeting adjournment to be concerned with this afternoon. It will likely adjourn with an announcement of no change to key short-term interest rates, but we may see some volatility in the markets following the post-meeting statement. If the statement gives any hint of change in their current forecasts on the number of rate hikes they expect to make this year, we could see a sizable change to mortgage rates this afternoon. This meeting will not be followed by a Fed press conference or economic projections, so it will be the post-meeting statement that drives trading. It will adjourn at 2:00 PM ET, so any reaction will come during mid-afternoon trading.
There are a couple of reports set for release tomorrow that are of minor and moderate importance. They will be addressed in this afternoon’s revision, once the markets has an opportunity to react to the FOMC results.
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…This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.