• Friday’s mortgage rates should be lower by approximately .125 of a discount point.  The bond market is currently up 5/32 (4.06%).

 • Stocks are rebounding a little from yesterday’s ugly afternoon with the Dow up 207 points and the Nasdaq up 42 points.

 • Yesterday’s stunning reversal in the major stock indexes only raised more concern about the future direction of equities. At the time of posting our Thursday morning commentary the Dow and Nasdaq were both up over 500 points but eventually closed the session with losses of 386 and 486 points respectively.

 • Stocks sometimes are relevant to mortgage rates because fear in the stock market often leads to a shift of funds into bonds as investors seek safety from the sell-off. As investors purchase bonds, their prices rise and their yields move lower and mortgage rates tend to track bond yields.

 • Today’s only relevant economic data was November’s revised Index of Consumer Sentiment from the University of Michigan at 10:00 AM ET. They announced a reading of 51.0 that was a little higher than the preliminary reading of 50.3 from earlier this month. The increase means surveyed consumers felt better about their own financial situations than previously thought and, by theory, are likely to spend more.

 • This morning’s early gains in both stock and bonds may be a result of comments from Federal Reserve Bank of New York President Williams’ comments during a speech in Chile. He clearly stated he feels there is room for another Fed rate cut in the near future and that he is more concerned about the softening employment sector than the current trend in inflation. That boosts the chance of seeing a third cut this year at the December 9-10th FOMC meeting.

 • Next week brings us plenty of economic data to drive bond trading and mortgage pricing, some of which are highly important reports that were delayed by the government shutdown.

 • There is nothing of importance scheduled for Monday, leaving weekend headlines or stock selling to likely be the cause if there is a noticeable change in rates.

 • The calendar includes September’s Producer Price Index and Retail Sales reports that usually have a strong influence on rates, but were delayed and are now aged. More recent updates on different aspects of the economy are also coming next week, such as the Fed’s preferred inflation readings.

 • It will be a holiday-shortened week with the markets closed Thursday followed by early closings Friday afternoon.

 • Look for details on all of next week’s activities in Sunday evening’s weekly preview.

 • 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.