Good Morning,
Yesterday’s outstanding 10-year bond performance helped to lower mortgage interest rates again. Three factors caused this type of strength in the bond market. ISM reported that manufacturing sector of our economy is contracting and that inflationary pressures have been declining. Sometimes it’s just that simple, but will this continue throughout the day today and do you lock an interest rate or do you wait?
There are 2 economic reports that are due:
10am - July’s Factory Orders: Measures new orders for durable and non-durable goods at the dollar level. If the actual results differ greatly from the expected results we should see more volatility again. Current expectations are showing a rise in orders of 0.8%. If the actual orders increase by less than 0.8% we could see rates go back down again.
2pm - Fed’s Beige Book report: Talks about the U.S. economic activity by region. I do not expect any big surprises here, but you never know what will happen.
Should I lock if I’m closing within:
- 15 days? YES
- 30 days? NO
- 45 days? NO
- 60 days? NO
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