• Friday’s mortgage rates should be lower by approximately .125 - .250 of a discount point. The bond market is currently up 7/32 (4.66%).

 • Stocks are mixed with the Dow up 104 points and the Nasdaq down 145 points.

 • This morning’s only semi-relevant economic data was New Home Sales report at 10:00 AM ET. It revealed a 1.6% increase in sales of newly constructed homes last month. Forecasts showed a larger percentage increase, but a sizable upward revision to May’s sales is skewing the headline numbers in the report.

 • The actual number of sold homes that are new construction was higher than what analysts were expecting to see, reiterating that the new home portion of the housing sector did indeed expand last month. Technically, this would make the report bad news for bonds. Realistically though, the report carries such a low level of importance that it has had no impact on this morning’s rates.

 • Bonds are reacting to a decline in oil prices this morning that eases inflation concerns, at least temporarily.

 • Next week’s calendar is a stark contrast to this week with economic data or other events scheduled each day, some of which is considered to be highly influential. Activities will start early Monday morning with the release of June’s Durable Goods Orders report that will give us some insight into the manufacturing sector.

 • In addition to the economic data, there are also a couple of shorter-term Treasury auctions being held early in the week and another FOMC meeting that carries a higher chance of yielding a Fed rate hike than any other meeting in a long time.  

 • We will also be watching for weekend headlines from the Middle East to affect bond trading and mortgage pricing Monday.

 • Look for details on all of next week’s scheduled events 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... 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.