Is Today a Good To Lock In the Best Mortgage Rate?

Tuesday’s bond market has opened down slightly after a new record trade deficit was announced. The stock markets are showing gains with the Dow up 65 points while the Nasdaq has gained 20 points. The bond market is currently down 4/32, which may push this morning’s mortgage rates higher by approximately .125 of a discount point.

The Commerce Departmen t posted July’s Goods and Services Trade Balance data this morning, showing a record deficit of $68 billion. This was higher than expected, but hasn’t had a significant impact on bonds or mortgage rates.

The results of today’s 10-year Treasury Note auction will be posted at 1:00 PM ET. If demand was strong, particularly from international investors, we could see mortgage rates improve this afternoon and tomorrow morning.

The answer is a resounding “Maybe”- the market is in a state of flucuation. My best advice to anyone interested in buying or refinancing a home is to get the process started as quickly as possible. Rates will not decrease drastically in the near future, but bad news in the investment markets could like cause a sharp increase on any given day. Start your loan and have your loan officer to monitor rates for the best day to lock in the best rate.

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