•Tuesday’s mortgage rates should be nearly unchanged from Monday’s early pricing. The bond market is currently down 3/32 (1.31%).

•Stocks are recovering some of yesterday’s heavy selling with the Dow currently up 207 points and the Nasdaq up 49 points. 

•This week’s economic calendar started at 8:30 AM ET this morning when August's Housing Starts report was posted. It showed that new home groundbreakings rose 3.9% last month and a secondary reading that tracks newly issued permits rose 6.0%. Both readings can be considered bad news for bonds and mortgage rates.

•We also have the 20-year Treasury bond auction taking place today. Results will be posted at 1:00 PM ET, making this an early afternoon event. A strong demand for the securities could help improve bonds and lead to slightly lower mortgage rates before closing today. 

•Tomorrow has several events that we will be watching, starting with August's Existing Home Sales report at 10:00 AM ET. The National Association of Realtors is expected to announce that the number of home resales in the U.S. slipped last month, indicating weakness in the housing sector. Bond traders would prefer to see a large decline in sales. 

•The big events of the week will come during afternoon trading tomorrow. The first item on the afternoon agenda is the FOMC meeting adjournment at 2:00 PM ET. What will be of interest is verbiage in the post-meeting statement regarding inflation, tapering of their monthly bond purchases and when the Fed may start raising key short-term interest rates.

•Also at 2:00 PM ET tomorrow, the Fed will release their revised economic projections for the U.S. The markets are interested in whether Chairman Powell and friends think the economy is rebounding quicker or slower than previously thought. Key readings the markets will be looking for are the unemployment rate, inflation and overall GDP growth. Downward revisions by the Fed will be good news for bonds and mortgage pricing.

•The adjournment, post-meeting statement and economic projections will be followed by a press conference with Chairman Powell at 2:30 PM ET. Analysts and market traders will be watching his words carefully. 

•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... 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 were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.