• Tuesday’s mortgage rates should be approximately .125 of a discount point lower than Monday’s early pricing due to bond strength late yesterday. The bond market is currently down 5/32 (4.24%).

• Stocks are mixed with the Dow up 101 points and the Nasdaq down 56 points.

• Fed Chairman Powell’s comments this morning in Portugal failed to give us any surprises. He basically reiterated that the Fed is willing to wait and see how much of an impact President Trump’s tariff plans will have on inflation and the U.S. economy before cutting key short-term interest rates again. This is pretty much the same message that he has given over the past couple of months.

• The Institute of Supply Management (ISM) announced at 10:00 AM ET that their June manufacturing index stood at 49.0. This was a small increase from May’s 48.5, meaning surveyed manufacturing executives felt business was slightly better last month than it was in May.

• We are also watching for a reaction in the bond market to the pending Senate spending bill in Washington DC. How much the bill will add to the U.S. deficit depends on what source you are using. The bottom line is that it is expected to raise the deficit instead of reducing it.

• It is important to keep in mind that the U.S. government sells debt to fund most of the deficit each year. If the amount that the deficit will rise once the bill becomes law is more than bond traders were expecting, it is safe to assume we will see a negative reaction in the bond market. More supply in the market without stronger demand leads to current bonds being sold at a discount, driving yields (and mortgage rates) higher.

• Tomorrow’s sole relevant economic report will be June's ADP Employment report at 8:15 AM ET. This report predicts changes in private-sector jobs, using the company's clients that use them for payroll processing as a base. It is expected to show approximately 100,000 private sector jobs were added during the month. A much smaller number would be good news for mortgage rates.

• 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.