Tuesday's bond market has opened in positive territory despite the release of stronger than expected economic news. The stock markets are showing losses with the Dow down 38 points and the Nasdaq down 6 points. The bond market is currently up 5/32, but we likely will see little change in this morning's mortgage rates due to some weakness late yesterday.

The Institute of Supply Management (ISM) reported late this morning that their manufacturing index for June rose from 49.6 in May to 50.2 in June. Analysts were expecting to see a decline in the index with a reading of 48.6. This means that manufacturer sentiment was stronger than thought. This is actually considered to be negative news for bonds and mortgage rates, however, the market seems to be geared towards oil and stock prices today.

The Commerce Department will post May's Factory Orders data late tomorrow morning, which is similar to the Durable Goods Orders report that was released last week. The biggest difference being that tomorrow's report covers both durable and non-durable goods. It usually doesn't have as much of an impact on the bond market as the durable goods data does, but can lead to changes in mortgage pricing if it varies from forecasts. Current expectations are showing a 0.5% rise in new orders from April's levels. A smaller than expected rise in orders would be considered good news for the bond market and should help lower mortgage rates slightly tomorrow.

I would not be surprised to see some volatility in bonds and possibly mortgage rates later today and tomorrow. Accordingly, it may be wise to lock an interest rate if closing in the immediate future if you are still floating. This volatility, if it does come, could improve mortgage rates or lead to upward revisions. I am not so certain that they will be favorable to mortgage shoppers, hence the lock recommendation. This doesn't mean that I am sure rates will move higher over the next day or so. It simply means that the likelihood of seeing much of an improvement during that time frame is outweighed by the potential risk of a spike in rates. Maintaining fairly constant contact with your mortgage professional is recommended for the next few days.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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.

Thursday's bond market has opened in positive territory following favorable economic news and mixed stock reactions. The Dow is currently down 85 points while the Nasdaq has gained 11 points. The bond market is currently up 20/32, which should improve this morning's mortgage rates by approximately .375 of a discount point..





The first piece of news posted this morning was the preliminary reading of the 2nd Quarter Gross Domestic Product (GDP), which is considered to be the best indicator of economic growth. It revealed a 1.9% annual rate of growth that was lower than forecasts. Today's release also revised the previous two quarters readings lower than previously announced, which dropped the last quarter of 2007 into negative growth. That was the first quarter of negative growth since 2001. Furthermore, today's release also showed a much weaker than expected reading in a key inflation reading of the data. Overall, this report was very f avorable for bonds and mortgage rates.

The second report of the day was the 2nd Quarter Employment Cost Index (ECI) that matched forecasts of a 0.7% rise. This index measures employers' costs for wages and benefits and is considered to be an important measurement of wage inflation. Since it met forecasts its result shave had little impact on the bond market or mortgage pricing this morning.

Also worth noting was the Labor Department's posting of last week's new claims for unemployment benefits. They were expected to say that 395,000 new claims for benefits were filed but announced that 448,000 we filed. That number is well above the benchmark 400,000 and the second consecutive week of being above it. That raises concerns in the market that the employment sector is weakening, especially with tomorrow's major report coming. If true, it would be very good news for the bond market and mortgage rates.

Tomorrow mornings brings us the release of two important reports, including one of the most important reports we see each month. This report gives us the U.S. unemployment rate, number of new jobs added to the economy and the average hourly earnings reading. The ideal situation for the bond market is rising unemployment, a loss of new jobs and little increase in earnings. This report is considered to be one of the single most important releases that we see each month.

While the today's GDP release can be considered the single most important report in general, it is posted quarterly rather than monthly like the Employment report. Tomorrow's Employment report is expected to show that the unemployment rate rose to 5.6% last month while approximately 75,000 new jobs were lost and a 0.3% increase in average earnings. The unemployment rate probably will not be much of a factor if the new jobs number varies from forecasts. However, due to the importance of the payroll numbers, we will undoubtedly see quite a bit of volatility in the markets and mortgage pricing.

Also scheduled for release tomorrow is the Institute for Supply Management's (ISM) Manufacturing Index for July. This index measures manufacturer sentiment by surveying trade executives about business conditions during the previous month. A reading above 50.0 means that more surveyed executives felt that business improved than those who said it had worsened. It is expected to show a decline to a reading of 49.2. A smaller than expected reading would be great news for the bond market and would likely improve mortgage rates tomrorow, assuming that the Employment report doesn't give us an major surprises.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float 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.

Thursday's bond market has opened in negative territory as stocks continue their upward move and inflation concerns make bonds less attractive to investors. Yesterday's rally in bonds seem to be carrying over into this morning's trading with the Dow up 58 points and the Nasdaq up 7 points. The bond market is currently down 5/32, which with yesterday's late selling will likely push this morning's mortgage rates higher by approximately .500 of a discount point compared to yesterday's morning rates.

The minutes from the last FOMC meeting did raise some concern in the bond market yesterday and helped fuel the stock rally. Some of excerpts included indications that the Fed's next move would likely be an increase to key short-term interest rates rather than another rate cut. This means that the Fed is more worried about inflation than a slowing economy. Since inflation erodes the value of a bond's future fixed interest payments, this news sent mortgage related bon ds lower and mortgage rates higher.

Today's only relevant data was June's Housing Starts report that surprised many by showing an increase in starts of new homes. It was expected to show another decline in starts. However, this data is not considered to be of high importance and has not had much influence on today's trading or mortgage pricing.

The Labor reported that 366,000 new claims for unemployment benefits were filed last week. This was an increase from the previous week, but not as high as analysts had expected. However, since this data tracks only a week's worth of claims it also hasn't affected mortgage rates this morning.

There is no relevant economic data scheduled for release tomorrow, meaning that stocks will likely heavily influence bond trading and mortgage rates. With this week's volatility, we could see traders adjust portfolios ahead of the weekend. That could lead to further volatility in bonds and mortgage rates agai n tomorrow.

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.

Wednesday's bond market has opened in negative territory again after this morning's economic data revealed stronger than expected readings. The stock markets seem to be having little reaction to the news with the Dow up 4 points and the Nasdaq nearly unchanged. The bond market is currently down 15/32, which will likely push this morning's mortgage rates higher by approximately .375 of a discount point.

The big news this morning was June's Producer Price Index (PPI) from the Labor Department. They reported that the overall CPI reading rose 1.1% while the core data rose 0.3%. Both of these readings exceeded forecasts, indicating that inflationary pressures were more of a threat at the consumer level of the economy than many had thought.

June's Industrial Production data was also released this morning. It showed an increase in output at U.S. factories, mines and utilities of 0.5%. This was much stronger than the 0.2% increase that was expecting, m eaning manufacturing activity was higher than thoughts. This is considered bad news for the bond market and mortgage rates.

Part two of Fed Chairman Bernanke's testimony on the economy is being made to the House Financial Services Committee. I am not expecting his words to impact bonds or rates this morning unless something in the question and answer portion surprises us.

The minutes from the last FOMC meeting will be posted later today. There is a possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members during discussion and voting at the last meeting. I am not expecting to see a change in rates as a result of them, but a possibility does exist.

Tomorrow's only relevant data is June's Housing Starts report. This data gives us an indication of housing sector strength, but is not considered to be of high importance. Analysts are currently expecting to see a smal l decline in new starts of housing projects. However, I don't see this data having a much of an impact on mortgage rates tomorrow unless it varies greatly from forecasts.

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.

Tuesday's bond market has opened in positive territory again as the volatility in stocks continues. The stock markets are in negative territory with the Dow down 106 points and the Nasdaq down 28 points. The bond market is currently up 18/32, which likely improve this morning's mortgage by approximately .250 of a discount point.

The Labor Department gave us June's Producer Price Index (PPI) this morning, saying that prices rose 1.8% last month. This exceeds the 1.3% increase that was forecasted. However, the core data reading of 0.2% that excludes more volatile food and energy prices fell short of forecasts. This means that food and energy prices spiked more than expected, but since core prices did not rise as much as thought that data is being considered favorable for bonds.

June's Retail Sales report was also released today, showing a 0.1% increase in sales when analysts had predicted a 0.4% rise. This was lower than expected and indicates tha t consumers are being more frugal than thought. That is good news for bonds because consumer spending makes up two-thirds of the U.S. economy.

Fed Chairman Bernanke's testimony before the Senate Banking Committee this morning did not reveal any significant surprises. He indicated there was concern about the housing market along with energy costs and their impact on the economy, saying that they could drag on the economy the remainder of the year. He will likely repeat the same testimony tomorrow before the House Financial Services Committee. I am not expecting his words to impact bonds or rates tomorrow unless something in the question and answer portion surprises us.





Tomorrow brings us the release of June's Consumer Price Index (CPI). It is a mirror of today's PPI with the exception that the CPI measures inflation at the more important consumer level of the economy. Analysts have forecasted a 0.7% increase in the overall index a nd a 0.2% rise in the core data. The core data is considered to be the key reading because it excludes more volatile food and energy prices, giving us a more stable measure of inflation. Higher than expected readings could raise inflation fears and push mortgage rates higher tomorrow.

June's Industrial Production data will also be posted tomorrow morning. This data measures output and U.S. factories, mines and utilities, giving us an indication of manufacturing sector strength. It is expected to show a 0.2% rise in production, indicating that the manufacturing sector showed moderate growth during the month. A smaller than expected increase would be good news and could help push mortgage rates slightly lower tomorrow.

Also worth noting is the release of the minutes from the last FOMC meeting. There is a possibility of the markets reacting to them following their 2:00 PM ET release tomorrow, especially if they show some divisiveness by its members durin g discussion and voting at the last meeting.

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.

Monday's bond market has opened in positive territory following early stock losses. The stock markets are kicking the week off with the Dow down 72 points and the Nasdaq down 8 points. The bond market is currently up 16/32, but we will likely still see an increase in mortgage rates of approximately .250 of a discount point as investors digest the news of the Fed supporting Fannie Mae and Freddie Mac.

This week brings us the release of six important economic reports for the bond market to digest. Several of these reports are considered to be of high importance, meaning we will likely see volatility in the financial markets and mortgage pricing over the next several days. There are also plenty of corporate earnings releases scheduled for the stock markets this week along with the minutes from the last FOMC meeting. Throw in a couple of days of Fed testimony and we have the makings for a very interesting week.

The first piece of data comes tomorrow mo rning with the release of June's Producer Price Index (PPI). The PPI is very important because it measures inflationary pressures at the producer level of the economy. It is expected to show a 1.3% increase in the overall reading and a 0.3% rise in the core data reading. The bond market should react quite favorably to weaker than expected readings, but a bigger than expected jump in the core reading could send mortgage rates higher tomorrow.

June's Retail Sales report will also be posted tomorrow. The Commerce Department is expected to say that sales at retail establishments rose 0.3% last month. This data is considered to be of high importance because it measures consumer spending. Consumer spending makes up two-thirds of the U.S. economy, so any related data is watched closely. A smaller than expected increase in sales could help fuel a bond rally and lead to lower mortgage rates, depending on the results of the PPI report.

Fed Chairman Bernanke will speak before the Senate Banking Committee tomorrow morning and the House Financial Services Committee Wednesday morning at 10:00am ET. His testimony will be broadcasted and will be watched very closely. Analysts and traders will be looking for the status of the economy and his expectations of future growth, particularly inflation concerns. This should create a great deal of volatility in the markets during the testimony and the question and answer session that follows. If he indicates that inflation is still a point of concern, we will likely see the bond market tank and mortgage rates rise.

Overall though, I think we will see the most movement in mortgage pricing this week tomorrow or Wednesday due to the release of the inflation related indexes and Mr. Bernanke's testimony those days. It will likely be an active week for mortgage rates with a fair amount of volatility, so please maintain contact with your mortgage professional if still floating an interest ra te.

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.

Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, fell 4.7 percent to 84.7 from an upwardly revised reading of 88.9 in April, and remains 14.0 percent below May 2007 when it stood at 98.5.

Lawrence Yun, NAR chief economist, says some pullback after a sharp increase in the previous month was expected.

“The overall decline in contract signings suggests we are not out of the woods by any means," he says. "The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy."

Location Matters

Here's how the PHSI fared across the region:

• West: slipped 1.3 percent to 97.5 in May but is 2 percent higher than May 2007.
• Northeast: declined 2.9 percent to 77 in May and is 16.4 percent below a year ago.
• Midwest: fell 6 percent to 78.6 and is 13.8 percent below May 2007.
• South: dropped 7.1 percent in May to 84.5 and is 22.1 percent below a year ago.

Yun says location has never mattered more than in the current market. “Some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half," he says. "Price conditions vary tremendously, even within a locality, depending upon a neighborhood’s exposure to subprime loans.”

Double-digit pending sales gains in May from a year ago were noted in Colorado Springs, Colo.; Sacramento, Calif.; and Spartanburg, S.C.

Housing Bargains

NAR President Richard F. Gaylord says the current market offers immediate benefits and long-term value for many buyers. “Home buyers are getting a great deal right now,” he says. “Although inflationary expectations appear to be under control for the time being, sharper consumer price gains could lead to notably higher mortgage interest rates in 2009.”

Existing-home sales are expected to grow from an annual pace of 5.01 million in the second quarter to 5.75 million in the fourth quarter. For all of 2008, existing-home sales should total 5.31 million, and then increase 5 percent next year to 5.58 million.

“The speed at which home prices has declined in a few select markets is unprecedented, but the large price declines in those areas have enticed bargain hunters back into the market,” Yun says. “Interestingly, there have been reports of multiple bidding after the large price cuts, so it is possible that most of the price declines have already occurred in those markets.”

The Market Forecast

Other NAR projections:

• The aggregate median existing-home price is projected to fall 6.2 percent this year to $205,300, and then rise by 4.3 percent in 2009 to $214,100.

• New-home sales are likely to fall 32.3 percent to 525,000 in 2008 and decline another 3.4 percent next year to 507,000.

• Based on current indicators, the 30-year fixed-rate mortgage is forecast to rise gradually to 6.5 percent by the end of this year, and then hold at that level for most of 2009. NAR’s housing affordability index is improving this year and is likely to rise 15 percentage points to 127 for all of 2008.

• Housing starts, including multifamily units, will probably fall 28.7 percent to 966,000 this year, and then drop another 9 percent in 2009 to 879,000. “In light of high inventory conditions, rising commodity prices and construction costs will curtail new home construction deep into 2009,” Yun says.

• The median new-home price is expected to decline 3.2 percent to $239,300 this year, and then rise 5.3 percent in 2009 to $251,900.

• Growth in the U.S. gross domestic product (GDP) is seen at 1.6 percent in 2008 and 1.4 percent next year. The unemployment rate should average 5.4 percent this year and 5.8 percent in 2009.

• Inflation, as measured by the Consumer Price Index, is forecast at 3.7 percent this year and 2.4 percent in 2009. Inflation-adjusted disposable personal income is projected to grow 1.5 percent in both 2008 and 2009.

Friday's bond market has opened well in negative territory despite significant stock losses. The major stock indexes are falling as investors fear that mortgage giants Fannie Mae and Freddie Mac are on the brink of collapse, renewing housing and credit concerns. The Dow is currently down 199 points while the Nasdaq has fallen 35 points. The bond market is currently down 18/32, but this morning's mortgage rates will likely show little change following yesterday's closing activity.

Neither of today's economic reports were that important to the markets. The first of the two showed that the U.S. trade deficit fell to $59.8 billion in May when it was expected to rise. The University of Michigan Index of Consumer sentiment for July came in at 56.6. This was a slight increase from June's final reading when it was expected to fall nearly a point. That means that consumers were more optimistic about their own financial situation than many had thought, which is considered a negative for bonds and mortgage rates.

Despite the difference between forecasts and actual results, this morning's economic data really has played little part in the market's direction today. Concerns that the government may need to take over or bail out Fannie and Freddie is the source of today's volatility. It's hard to say whether this will end up being a positive or negative for mortgage rates. But it is a fairly safe bet that we will see plenty of volatility in the markets are public comments made, news releases are posted and the almighty rumor mill kicks into high gear. Accordingly, be careful if still floating an interest rate.

Next week brings us plenty of important economic news for the markets to digest. Some of the key reports will give us inflation readings at the producer and consumer level of the economy and retail level sales from last month, along with the minutes from the last FOMC meeting. However, none of these rel eases come until the middle and latter part of the week so I am expecting the stock markets and related news to be a major influence on bond trading and mortgage rates the first couple of days. Look for more details on next week's events in Sunday's weekly preview.

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.

Thursday's bond market has opened down slightly following unfavorable results in today's only economic news. The stock markets are mixed with the Dow down 5 points and the Nasdaq up 4 points. The bond market is currently down 4/32, which should keep this morning's mortgage rates near yesterday's levels.

The Labor Department reported this morning that new claims for unemployment benefits fell sharply last week. They said that 346,000 new claims were filed last week. This was well below the 395,000 that was expected and a drop of 58,000 claims from the previous week. That is good news for the economy, meaning its negative news for bonds and mortgage rates. Fortunately though, this data only tracks a week's worth of claims and is not usually considered to be of high importance to the markets.

There is a Treasury auction of 10-year inflation protected notes (TIPS). It likely will not have an impact on rates, but could influence bond trading slightly if it is met with a strong or weak demand from investors. In a very light week of economic news such as this week is, events like these sometimes have a greater impact on the markets than if they took place during a busy week of news.

Both of the week's monthly economic reports are scheduled to be posted tomorrow morning. The first is May's Goods and Services Trade Balance report at 8:30 Am ET, which measures the size of the U.S. trade deficit. This data is not considered to be of high importance to the bond market and will not likely have an impact on mortgage rates. However, if it does vary greatly from analysts' forecasts of a $62.2 billion deficit, we may see some movement in bond prices, but probably not enough to cause much change in mortgage rates.

The second is the University of Michigan's Index of Consumer Sentiment that is released in a preliminary form each month and then followed up two weeks later with a final reading. The preliminary read ing for July will be posted late tomorrow morning and is expected to fall from June's final reading of 56.4 to 55.5. This would indicate that consumers were less comfortable with their own financial situations this month than last month. It is believed that if consumers are confident in their own finances, they are more apt to make large purchases in the near future. And with consumer spending making up two-thirds of our economy, investors pay close attention to reports such as these.

Wednesday's bond market has opened relatively flat yet again, which seems to be the norm lately. The stock markets are following suit with the Dow and Nasdaq both down a couple of points. The bond market is currently up only 1/32, but due to strength in bonds late yesterday we should see an improvement of .250 - .375 of a discount point in this morning's mortgage rates.

There is no relevant economic news scheduled for release again today. I am expecting the stock markets, and possibly oil prices, to continue to be the biggest influence on bond trading the rest of the day. If the major stock indexes remain near current levels, mortgage rates will likely follow suit. However, if stocks or oil moves significantly, we likely will see a shift in bond trading and possibly mortgage pricing.

I am remaining on the cautious side, particularly in the short-term outlooks. I think there is more likelihood of seeing bonds fall and mortgage rates move higher in the immediate future than there is of them improving much. Accordingly, I am holding the lock recommendations for immediate and short-term closings.

The first piece of economic news that may affect mortgage rates is tomorrow weekly unemployment figures from the Labor Department. Analysts will be paying a little more attention to this week's release than usual because last week's report showed that claims had crossed above 400,000 the previous week. This is an important benchmark that will be watched closely. Last week's numbers didn't get much attention because they were posted at the same time as June's monthly Employment report. But with little data scheduled for release this week, I believe more focus will be made on tomorrow's report than usual. Current forecasts are calling for approximately 395,000 new claims to have been filed.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 da ys... 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.

Tuesday's bond market has opened relatively flat again as investors prepare for this week's earnings releases. The stock markets are showing small gains with the Dow up 23 points and the Nasdaq up 7 points. The bond market is nearly unchanged from yesterday's closing level, but we should see an improvement in this morning's mortgage rates of approximately .250 of a discount point due to strength late yesterday.

There is no relevant economic news scheduled for release today. I am expecting the stock markets to continue to be the biggest influence on bond trading the rest of the day. If the major stock indexes remain near current levels, mortgage rates will likely follow suit. However, if stocks continue to move higher, bonds may fall and we could see afternoon upward revisions to mortgage rates. But, if stocks move into negative territory, we may see mortgage rates improve later today.

I am remaining on the cautious side, particularly in the sh ort-term outlooks. I think there is more likelihood of seeing bonds fall and mortgage rates move higher in the immediate future than there is of them improving much. Accordingly, I am holding the lock recommendations for immediate and short-term closings.

This week brings us the release of only two economic reports for the bond market to digest. It also is the beginning of corporate earnings season. Those quarterly earnings reports can lead to significant volatility in the stock markets, which could influence bond trading and mortgage rates.

The first piece of economic news that may affect mortgage rates is Thursday's weekly unemployment figures from the Labor Department. Analysts will be paying a little more attention to this week's release than usual because last week's report showed that claims had crossed above 400,000 the previous week. This is an important benchmark that will be watched closely. Last week's numbers didn't get much attention be cause they were posted at the same time as June's monthly Employment report. But with little data scheduled for release this week, I believe more focus will be made on Thursday's report.

Also worth mentioning are a couple of public speeches by Fed members including Fed Chairman Bernanke and a 10-year Treasury auction of inflation protected notes. The speeches will be watched closely for any possible hint of the Fed's next move. The Treasury auction likely will not have an impact on rates, but could influence bond trading slightly if it is met with a strong or weak demand from investors. In a very light week of economic news such as this week is, events like these sometimes have a greater impact on the markets than if they took place during a busy week of news.

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 cl osing 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.

Monday's bond market has opened relatively flat with no relevant economic news scheduled for release today. The stock markets are kicking the week off in positive territory with the Dow up 70 points and the Nasdaq up 14 points. The bond market is nearly unchanged from Thursday's close, but we will still see an increase in this morning's mortgage rates of approximately .250 of a discount point due to weakness late Thursday.

This week brings us the release of only two economic reports for the bond market to digest. It also is the beginning of corporate earnings season. Those quarterly earnings reports can lead to significant volatility in the stock markets, which could influence bond trading and mortgage rates.

The first piece of economic news that may affect mortgage rates is Thursday's weekly unemployment figures from the Labor Department. Analysts will be paying a little more attention to this week's release than usual because last week's report showed that claims had crossed above 400,000 the previous week. This is an important benchmark that will be watched closely. Last week's numbers didn't get much attention because they were posted at the same time as June's monthly Employment report. But with little data scheduled for release this week, I believe more focus will be made on Thursday's report.

Also worth mentioning are a couple of public speeches by Fed members including Fed Chairman Bernanke and a 10-year Treasury auction of inflation protected notes. The speeches will be watched closely for any possible hint of the Fed's next move. The Treasury auction likely will not have an impact on rates, but could influence bond trading slightly if it is met with a strong or weak demand from investors. In a very light week of economic news such as this week is, events like these sometimes have a greater impact on the markets than if they took place during a busy week of news.

Overall, I am e xpecting to see a fairly calm week in mortgage rates. Friday will be the most important day with two economic reports scheduled for release. If the corporate earnings reports that are scheduled for this week are a disappointment, we could see stocks move lower and investors seek safe-haven in bonds. This would likely help push bond prices higher and mortgage rates lower for the week.

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.

Thursday's bond market has opened down slightly after this morning's Employment report failed to deliver any significant surprises. The stock markets are reacting favorably with the Dow up 90 points and the Nasdaq gaining 6 points. The bond market is currently down 5/32, which will likely keep this morning's mortgage rates at yesterday's afternoon levels.

The Labor Department gave us today's only relevant economic news, saying that the unemployment rate remained at 5.5% last month when it was expected to slip to 5.4%. The report showed that 62,000 jobs were lost during the month, which nearly matched forecasts of 60,000. The report also revised May's job loss from 49,000 to 62,000, meaning that there was little difference between May's employment situation and June's. This lack of ?further deterioration? is being taken as good news for stocks and helped prevent bonds from moving higher this morning.

Also worth noting was the Labor Department's w eekly release of unemployment claim figures. They said this morning in a separate release that 404,000 new claims for benefits were filed last week. This was the first time that claims crossed the important benchmark of 400,000 since March. Claims exceeding 400,000 is believed to be a recessionary sign and indicates that the employment sector is weakening. However, this news is being overshadowed by the much more important monthly report that was released today rather than its typical Friday posting day.

Keep in mind that the bond market will close at 2:00 PM today and all markets will be closed tomorrow in observance of the Independence Day holiday. All markets will reopen Monday morning.

Next week is pretty light in terms of economic releases, especially compared to this week's data. There are only a couple of reports scheduled that are even relevant to bonds and mortgage rates, but none are considered to be of high-importance. Look for more det ails on next week's events in Sunday's weekly preview.

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.

Wednesday's bond market has opened in positive territory again as investors continue to worry about the economy and what this month's Employment report is going to show. The stock markets are showing losses this morning with the Dow down 36 points and the Nasdaq down 21 points. The bond market is currently up 7/32, but we will still see an increase in this morning's mortgage rates of approximately .250 of a discount point due to weakness in bonds late yesterday.

The Commerce Department reported this morning that new orders at U.S. factories rose 0.6% in May. This was slightly higher than forecasts but not enough to influence bond trading or mortgage rates during morning trading. They also revised April's sales higher by 0.2% but it also has not had an impact on mortgage pricing.

Tomorrow morning brings us the release of June's Employment report that will give us the U.S. unemployment rate, number of new payrolls added or lost and average hourly earnings. These are considered to be very important readings of the employment sector and can have a huge impact on the financial markets.

The ideal scenario for the bond market is rising unemployment, a decline in payrolls and no change in earnings. Weaker than expected readings should help boost bond prices and lower mortgage rates. However, stronger than forecasted readings could be disastrous for mortgage pricing. Analysts are expecting to see the unemployment rate to slip 0.1% to 5.4%, while 60,000 jobs were lost and a 0.3% rise in earnings.

The bond market will close early tomorrow ahead of Friday's Independence Day holiday and will reopen Monday morning. This may add to the volatility following tomorrow's release as investors move to protect themselves over the long weekend.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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.