• Tuesday’s mortgage rates should be lower by approximately .250 of a discount point. If you saw an intraday improvement in pricing before closing yesterday, you should see a smaller improvement this morning. The bond market is currently up 2/32 (4.28%).

 • Stocks are posting early gains also with the Dow up 239 points and the Nasdaq up 240 points.

 • Today’s big economic news was the release of March’s Producer Price Index (PPI) that showed inflation at the wholesale level of the economy was much softer than expected last month. The overall PPI reading that includes gas prices rose only 0.5% when it was expected to jump 1.1%. More importantly, the core reading that excludes volatile food and energy costs was up only 0.1%, falling well short of the 0.4% that was predicted.

 • Those lower monthly readings allowed the year-over-year readings to come in below expectations also.

 • In short, wholesale inflation wasn’t nearly as bad last month as many had expected. A spike in gas prices as a result of the Iran war had feared higher inflation readings. It is such good news for the bond market that it is surprising it hasn’t had a more noticeable reaction to the news.

 • Tomorrow’s only relevant event comes during afternoon hours since the morning has no economic data scheduled for release. The Federal Reserve will be posting their Beige Book report at 2:00 PM ET that gives us insight into economic conditions by Fed region via business contacts throughout the country. Traders will be looking for changes in inflation, employment and overall economic activity since the last update. If there is a reaction, it will come during mid-afternoon trading tomorrow.

 • 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.