Friday's bond market has opened in positive territory despite stronger than expected economic news. The stock markets are showing minor losses with the Dow down 10 points and the Nasdaq down 1 point. The bond market is currently up 17/32, which should improve this morning's mortgage rates by approximately .250 of a discount point.

The University of Michigan posted their Index of Consumer Sentiment late this morning, announcing a reading of 70.2. This was a sizable increase from August's final reading and higher than what analysts had expected. This means that consumers are more optimistic about their own financial situations than many had thought. That can be considered bad news for bonds and mortgage rates because it hints that consumers are more apt to make large purchases in the near future. However, it appears the data is of no concern to traders this morning.

This morning's bond gains can partly be attributed to a good auction yesterday o f 30-year Bonds. The results of the sale indicate that investors still have an appetite for U.S. securities. This has helped boost long-term securities such as mortgage-related bonds.

Next week brings us the release of several important reports including two key inflation readings and an extremely important measurement of consumer spending. None of the relevant reports are scheduled for release Monday, so I am expecting stock prices to heavily influence bond trading and mortgage rates until we get to the week's data. Look for more details on next week's events in Sunday's weekly preview.

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