Friday's bond market has opened in positive territory following a weak open in stocks. The stock markets are in selling mode during early trading with the Dow down 110 points and the Nasdaq down 28 points. Weaker than expected earnings reports from a couple of major names is the main reason for the early selling in stocks. The bond market is currently up 9/32, but we will likely still see an increase in this morning's mortgage rates of approximately .250 of a discount point due to weakness late yesterday.

There were two reports released this morning, but neither can be considered highly important to the markets or mortgage rates. September's Industrial Production data was the first, revealing a 0.7% increase in industrial output last month. This was much stronger than forecasts, meaning that production at U.S. factories, mines and utilities exceeded expectations. This can be considered negative news for bonds, but fortunately the bond market has not had much of a reaction to this news.

The last report of the week was October's preliminary reading to the University of Michigan's Index of Consumer Sentiment late this morning. It came in at 69.4, well below forecasts of 73.5. This indicates that consumers were less optimistic about their own financial situations than many had thought. That is good news for the bond market because falling levels of consumer confidence usually means consumers are less likely to make large purchases in the near future, limiting gains in economic activity. However, this report is considered to be only moderately important to the markets and has not had a major influence on this morning's trading or mortgage rates.

Next week brings us a handful of relevant economic reports for the markets to digest. Only one of them is considered very important, meaning it has the potential of significantly affecting mortgage rates. The rest are either of moderate or low importance, which means that they may affect mortgage rates slightly. None of the week's relevant data is being posted Monday, therefore, the stock markets are likely to influence bond trading and mortgage rates. 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... Lock if my closing was taking place between 21 and 60 days... Lock 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 flat despite early stock gains and stronger than expected unemployment data. Stocks are rallying with the Dow up 80 points and the Nasdaq up 25 points. The bond market is nearly unchanged from yesterday's close, but we will likely see an improvement in this morning's mortgage rates of approximately .125 - .250 of a discount point due to strength late yesterday.

The Labor Department reported this morning that 521,000 new claims for unemployment benefits were filed last week. This was lower than expected and the lowest total in approximately nine months. This is considered bad news for bonds, but fortunately this data is not considered to be highly important and has had little impact on this morning's mortgage rates.

Yesterday's 10-year Note sale actually went very well. Investor demand was strong, indicating there is still an appetite for U.S. debt. The bond market moved higher after the results were posted yes terday afternoon, but the rally fell well short of what would be expected. This could be a result of concerns about today's 30-year Bond sale, or could mean that there is strong resistance at current prices. I am thinking the latter, which is the reason for the conservative approach towards mortgage rates. Theoretically, bonds could still move higher, pushing mortgage rates lower. However, until we are able to break below current levels, I am staying on the conservative side as rates will almost always spike higher faster than they move lower.

There is no monthly or quarterly economic data scheduled for release today. Look for any swings in stock prices to affect bonds, particularly since we are heading into corporate earnings season. Today's 30-year Bond sale probably will not heavily influence mortgage rates this afternoon, but it does have the potential to cause rate changes. I believe its potential negative impact on rates is greater than its likely posi tive impact. This means that a strong sale today may lead to minor improvements to mortgage pricing this afternoon, but a weak sale could lead to a noticeable increase in rates.

Tomorrow morning brings us the only factual economic data of the week, but it is one of the least important reports we get each month. August's Goods and Services Trade Balance will give us the size of the U.S. trade deficit, but usually does not lead to significant movement in bond prices or mortgage rates. It is expected to show a $32.9 billion trade deficit.

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... Lock if my closing was taking place between 21 and 60 days... Lock 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 the direction of stocks. The stock markets are showing gains of 68 points and 16 points for the Dow and Nasdaq respectively. The bond market is currently up 6/32, but I don't believe we will see much of a change in this morning's mortgage rates.

This week brings us only one monthly economic report for the markets to digest and it is not considered to be of high importance. This means that the week will be left mostly up to the stock markets and other influences since there is a lack of factual data for bonds to trade on. In addition to the one report, we also have two relevant Treasury auctions that can also cause movement in rates if demand for them is particularly strong or weak.

There are no relevant reports or events scheduled for today or tomorrow. The first relevant event of the week is Wednesday's 10-year Treasury Note auction. This sale will give us an important measure of investor interest in longer-term U.S. debt, particularly from international buyers. If there is a strong demand in the sale, we should see the broader bond market rally and mortgage rates move lower. However, a lackluster interest in the sale would likely lead to higher mortgage rates Wednesday afternoon.

Overall, I suspect this is going to be fairly quiet week for the bond market and mortgage rates, especially compared to last week. For the most part, I believe the week will be left to the stock markets and the Fed auctions. The most important day of the week is likely Wednesday due to the 10-year Treasury Note sale, but any day of significant stock volatility may make that particular day the most eventful.

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... Lock 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.