• Monday’s mortgage rates should be close to Friday’s early pricing due to small bond gains as the week ended. The bond market is currently down 7/32 (4.16%).

 • Stocks are showing early gains with the Dow up 106 points and the Nasdaq up 99 points.

 • There are no relevant economic releases or other events scheduled today that are expected to influence mortgage rates.

 • We aren’t seeing a clear reason for this morning’s early bond market losses. It could be a result of traders being anxious about the batch of data coming tomorrow. Or it may be bonds just simply further establishing their recent range.

 • This rest of the week has only three economic reports set for release that we will be watching, in addition to a couple of Treasury auctions and the weekly unemployment update.

 • The week's first piece of data will come at 8:30 AM ET tomorrow morning when the shutdown-delayed preliminary reading of the 3rd Quarter Gross Domestic Product (GDP) will be posted. While the age of this data will likely soften its influence on the markets, it is still relevant and should draw a reaction if there is a surprise. Current forecasts show the economy expanded at a 3.2% annual pace during the July through September months. Good news for rates would be a slower growth rate.

 • October’s Durable Goods Orders report is tomorrow’s second release. The 8:30 AM ET release gives us a measurement of manufacturing strength by tracking orders for big-ticket products such as appliances, airplanes and electronics. This is another report that traditionally draws plenty of attention but wasn’t released as scheduled because of the government shutdown. Analysts are expecting to see a 0.4% increase in new orders, pointing to modest growth in manufacturing.

 • Tomorrow’s final economic release will be the Fed’s Industrial Production report at 9:15 AM ET. This update will be a combination report that covers both October and November. It tracks output at U.S. factories, mines and utilities, but isn’t considered to be one of the more important reports each month. We usually see a modest reaction to its results, even when it varies from forecasts. Favorable news for mortgage rates would be a decline in production.

 • There are also two relatively important Treasury auctions this week that may influence bond trading enough to affect mortgage rates slightly. First will be an auction of 5-year Treasury Notes tomorrow. If this sales go poorly, meaning investor demand was soft, we could see broader selling in the bond market that leads to a modest upward revision in mortgage rates. Results will be posted at 1:00 PM ET, making this an early afternoon event for rates tomorrow.

 • Overall, tomorrow is clearly the most important day for mortgage rates this week. The calmest day will probably be Friday since there is no relevant data and many traders will be out of the office for the extended holiday weekend.

 • We still could see a noticeable move in rates this week if tomorrow’s data shows some big surprises. Therefore, please keep an eye on the markets if still floating an interest rate and closing in the near future.

 • 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.