• Tuesday’s mortgage rates should be close to Monday’s early pricing due to bond weakness late yesterday. The bond market is currently up 11/32 (4.09%).

 • Stocks are showing sizable losses with the Dow down 543 points and the Nasdaq down 342 points.

 • The bond market is benefiting from growing concerns about the stock market. This is causing funds to shift from stocks into the bond market has a safe haven.

 • This morning’s release of ADP’s new 4-week Employment Change report showed an average of 2,500 private-sector jobs were shed, which was an improvement from the previous update that revealed an average loss of 11,250 jobs. It doesn’t appear that this report had a noticeable impact on the bond market or mortgage rates since bonds were posting gains before the report was released.

 • Also released this morning was August’s Factory Orders report that was previously delayed by the shutdown. It revealed a 1.4% increase in new orders for durable and non-durable goods.

 • The Factory Orders report traditionally doesn’t carry much significance in the markets because a good portion of the data is included in the Durable Goods Orders report that precedes its release. Because of that, and the fact this data is now several months old, we haven’t seen much of a reaction to this report either.

 • There doesn’t appear to be any relevant economic data coming tomorrow, but we do have a Treasury auction taking place that may affect rates during afternoon trading. 20-year bonds are being sold with results set to be announced at 1:00 PM ET. Both of last week’s long-term auctions drew a lackluster demand from investors compared to other recent sales. If tomorrow’s announcement indicates there was stronger demand for the securities than last week’s sales, we may see bond prices rise and mortgage rates improve slightly before the end of the day.

 • Visit our Daily Commentary page on our site for detailed explanations on current news that is relevant to mortgage rates.

 

 

 

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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... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.