Provided by a la mode 

Wednesday’s bond market has opened in negative territory following the release of stronger than expected economic news. The stock markets are showing losses with the Dow down 38 points and the Nasdaq down 3 points. The bond market is currently down 8/32, but we will likely see little change in mortgage rates due to strength in bonds late yesterday. The Commerce Department reported that March’s Factory Orders rose 4.2%, exceeding forecasts. This data gives us a measurement of manufacturing sector strength and was expected to rise 3.7%, indicating manufacturing activity was stronger than thought. This is considered to be bad news for bonds and mortgage rates. The Labor Department will release its 1st Quarter Productivity and Costs data early tomorrow morning. This information helps us measure employee productivity in the workplace. High levels of productivity help allow low-inflationary economic growth. If employee productivity is rising, the bond market should react favorably. However, a decrease could raise inflation concerns that cause bond prices to drop and mortgage rates to rise tomorrow morning. It is expected to show a 3.0% increase in productivity. The week’s most important release is being saved for last. The almighty Employment report will be released Friday at 8:30AM, giving us April’s employment statistics. This is where we may see a huge rally or major sell-off in the bond market and large changes in mortgage rates. The ideal situation for the bond and mortgage markets would be an increase in the unemployment rate and fewer than expected new payrolls. If we are not so lucky, we still may see an improvement to mortgage pricing if we get weaker than expected readings. Just how much of an improvement or worsening depends on how much variance there is between forecasts and actual readings. This could turn out to be a wonderful day in the mortgage market, but it also carries risks of seeing mortgage rates move higher if the Labor Department posts stronger than expected readings. Current forecasts are calling for a 4.7% unemployment rate and approximately 200,000 new jobs with average earnings rising 0.3%. 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.