Today's Mortgage Market at a Glance

Updated on April 12, 2021 10:05:26 AM EDT

Monday’s mortgage rates should be close to Friday’s early pricing, maybe slightly lower due to late gains. The bond market is currently down 4/32 (1.67%).

Stocks are showing early losses of 72 points in the Dow and 76 points in the Nasdaq.

There is nothing of importance taking place this morning, but we do have a 10-year Treasury Note auction today that may affect rates this afternoon. Results will be posted at 1:00 PM ET. If demand from investors was strong, the bond market could rally during early afternoon trading, possibly leading to lower mortgage rates.

March’s Consumer Price Index (CPI) at 8:30 AM ET tomorrow is the first economic data of the week. This index is one of the more important pieces of data the bond market gets each month. It will give us a measurement of inflationary pressures at the consumer level of the economy. Weaker than expected readings would be favorable news for the bond market and mortgage rates. Current forecasts are calling for a 0.5% rise in the overall reading and the core data to rise 0.2%.

Also worth noting is that we are heading into corporate earnings season where publicly-traded companies post their quarterly earnings and forward projections. Generally speaking, bad news for stocks is good news for bonds and could lead to lower mortgage rates. Disappointing earnings should drive stocks lower, causing funds to shift into bonds and mortgage rates to move lower.

Bonds have had nice run recently that have pushed yields and mortgage rates lower. Don’t be surprised to see some pressure build before making another leg downward. Accordingly, it would be prudent to 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..

CLICK HERE to view full detailed report and recommendations

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.

 ©Mortgage Commentary 2021

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