• Tuesday’s mortgage rates should be lower than Monday’s pricing by approximately .250 of a discount point. The bond market is currently up 10/32 (4.63%).

 • Stocks are also showing strong gains with the Dow up 601 points and the Nasdaq up 397 points.

 • Today’s only relevant economic data came at 10:00 AM ET when June's Factory Orders report was posted. It revealed new orders at U.S. factories for durable and non-durable goods fell 0.3% when forecasts had them rising 0.3%. The unexpected decline is good news for bonds since it points to weakness in the manufacturing sector.

 • The Factory Orders report isn’t the cause of this morning’s improvement in rates. Bond were showing strength long before this data was released. More headlines that indicate progress in an Iran – U.S peace deal are causing oil prices to move lower, hence bonds are reacting favorably this morning.

 • There are two pieces of economic data set for release tomorrow with both considered to be more influential than today’s data was.

 • First will be the monthly ADP private-sector Employment report that comes from a non-governmental entity. The payroll processing company is expected to say 75,000 new private-sector payrolls were added to the economy last month. It is easy to argue that this report is given more attention than it deserves, particularly because many unsuccessfully rely on it to predict the monthly government figures that will come Friday. Good news for rates would be a much smaller number than the 75,000 new jobs that are expected.

 • The Institute for Supply Management's (ISM) non-manufacturing index (aka service index) for July will be posted tomorrow morning at 10:00 AM ET. It is expected to show a reading of 54.4, up from June's 54.0. Readings above 50.0 mean more surveyed executives felt business improved during the month than those who said it worsened. A much weaker than predicted reading would be favorable for bonds and mortgage pricing.

 • Also worth noting about tomorrow is a speech by Fed Governor Lisa Cook at 4:05 PM ET. She will be speaking at a luncheon in Anchorage, Alaska with a topic listed as Economic Outlook. She has previously stated she is willing to vote for a rate hike if inflation doesn’t start retreating towards the Fed’s goal of a 2.0% annual rate. This leaves open the possibility of her making comments on the subject of when the Fed may need to raise key rates.

 • Since Fed Governor Cook’s speech is a late afternoon event for the markets, we may not see a reaction to something said until Thursday morning.

 • 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.