Monday's bond market has opened down slightly despite further stock weakness. The Dow is currently 52 points while the Nasdaq is showing a slight gain of 2 points. The bond market is currently down 4/32, which will likely keep this morning's mortgage rates at Friday's levels.

There is no relevant economic news scheduled for release today. The week does bring us four pieces of data along with a Treasury auction. Only one of the four is considered to be of high importance to the markets and it comes Thursday.

The first report is September's Existing Home Sales late Wednesday morning. Its sister report, September's New Home Sales will be posted Thursday morning. These reports give us an indication of housing sector strength and mortgage credit demand. I don't see them having much of an influence on the bond market or mortgage rates, but a reading that varies greatly from analysts' forecasts could lead to a slight change in mortgage pricing.

Overall, this is going to be a moderately busy week in the financial and mortgage markets. There is not a great deal of economic news scheduled for release in the week, so the stock markets and investor appetite for stocks compared to safety of bonds will likely be the biggest influence on mortgage rates. The Treasury auction is Thursday, when 5-year Notes will be sold. This will help gauge investor interest in bonds and could lead to a bond rally or selling. The most important day of the week is Thursday due to the Durable Goods Orders release and the Treasury sale.

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.

©Mortgage Commentary 2007