Thursday’s bond market opened in negative territory following the release of this morning’s economic data. The stock markets are showing gains with the Dow currently up 32 points and the Nasdaq up 15 points. The bond market is currently down 10/32, which will likely push this morning’s mortgage rates approximately .250 - .375 of a discount point higher than yesterday’s morning rates.

The Commerce Department said this morning that retail sales rose 0.6% last month, slightly exceeding analysts’ latest forecasts. Causing more selling was a sizable upward revision to February’s sales. Last month’s release showed that sales fell 1.4% in February, but today’s revision changed that decline to only 0.8%. This means that sales were better than previously thought in February and a little stronger than expected in March. This is considered to be negative new for bonds.

The second relevant report of the day was the release of the University of Michigan’s Index of Consumer Sentiment. It rose to 89.2, compared to the 89.0 that was expected, but this reading has not had much of an impact on bond trading or mortgage rates this morning.

In a small piece of good news, the Labor Department reported that 313,000 new claims for unemployment benefits were field last week. This was higher than expected, but the weekly data i s of low importance to the market so has not affected mortgage rates.

Yesterday’s Treasury auction was met with a poor demand from investors, leading to afternoon weakness in bonds. The bond market will close early today and remain closed tomorrow in observance of the Good Friday holiday. The stock markets will trade a full day today, but also will be closed tomorrow. The markets will reopen Monday morning.

Despite the fact that the markets are closed tomorrow, there is still a report scheduled for release. The government is currently scheduled to post March’s Industrial Production report at 9:15 AM ET. This data gives us a measurement of output at U.S. factories, mines and utilities, translating into an indication of manufacturing sector strength. Current forecasts are calling for an increase in production of 0.5%.

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