Friday's bond market opened in positive territory, continuing Thursday's afternoon's rally. The stock markets showed losses with the Dow down 9 points and the Nasdaq down 20 points. The bond market was up 15/32, which should improve mortgage rates by approximately .375 -.500 of a discount point over Thursday's morning rates.

Friday's only relevant economic data came from the University of Michigan who posted their Index of Consumer Sentiment for June late yesterday morning. It revealed a reading of 69.0 that fell between last month's final reading of 68.7 and forecasts of 69.5. This means surveyed consumers were a little more optimistic about their own financial situations than last month, but slightly less optimistic than analysts had expected. But the difference between forecasts and the actual reading was not wide enough to influence bond trading or mortgage rates.

Yesterday's buying in bonds was a carryover from Thursday's rally that began when the results of the 30-year Bond auction were posted. The sale was met with a very strong demand, making existing securities more attractive to investors. If that momentum can carry into next week, we should see mortgage rates recover even more of their recent increases.

Next week is fairly active in terms of economic releases with relevant data being posted three of the five days. There are two key inflation readings on the calendar that will likely be the biggest news of the week, but none of the relevant news is scheduled to be released Monday. Look for more details on next week's events in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Lock 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.