Wednesday's bond market has opened in positive territory after this morning's housing data showed a surprising drop in sales. The stock markets are showing small losses with the Dow down 26 points and the Nasdaq down 16 points. The bond market is currently up 20/32, which should improve this morning's mortgage rates by approximately .250 of a discount point form yesterday's morning rates.

May's New Home Sales from the Commerce Department was today's only relevant economic report. It revealed a whopping decline of 33% in sales of newly constructed homes, pushing sales levels down to record lows. This further indicates that the tax credits being offered to homebuyers were heavily supporting the housing market. That raises significant concerns about the growth ability of the housing sector now that they are expiring. This data is favorable news for the bond market and mortgage rates because a weakening housing sector will make a broader economic recovery mor e difficult and eases inflation concerns. Today's data usually has little impact on trading and mortgage rates, but the size of decline has allowed the news to influence this morning's rates.

Later today, the week's two-day FOMC meeting will adjourn. It is widely expected that Mr. Bernanke and company will not raise key short-term interest rates at this meeting, but the markets will be watching the post-meeting statement for any hint of when their next move may come. Market participants will also be looking for an indication that the Fed's opinion on monetary policy may have changed from the last meeting, possibly giving the impression that they will begin raising rates later than currently expected.

The meeting will adjourn at 2:15 PM ET, so look for an update to this report shortly after the markets have an opportunity to react to their words.

If I were considering financing/refinancing a home, I would.... Lock if my closing wa s 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.