Tuesday's bond market has opened down slightly as stocks show modest gains. The stock markets are holding yesterday's gains with the Dow up 27 points and the Nasdaq up 10 points. The bond market is currently down 4/32, but we will still see an increase of approximately .250 of a discount point in this morning's rates due to yesterday's heavy selling.

There is no relevant economic data being posted today. I am expecting to see a fairly calm day as investors await the rest of the week's reports. The next relevant news comes tomorrow morning when the Commerce Department releases April's Factory Orders. This manufacturing sector report is similar to last week's Durable Goods Orders release, but also includes orders for non-durable goods. It can cause some movement in the financial markets if it varies from forecasts by a wide margin, but it isn't expected to cause much change in rates this month. Current forecasts are expecting to see an increase in orders of 0 .3%.

The second report of the day may have a noticeable impact on the markets or be a non-factor depending on its results. The Institute for Supply Management will release its services index late Wednesday morning. It is expected to show a reading of 45.0, with the same principals as Monday's manufacturing index. If this reading varies greatly from forecasts, we may see volatility in the markets and mortgage rates. However, if its results are in the general area of expectations, it will likely have no influence on the markets and mortgage pricing.

Thursday's reports are moderately important, but the markets will likely be looking towards Friday's Employment report before making a significant move either direction. Until we get to Friday, the stock markets will probably have more of an influence on bond trading and mortgage rates than Wednesday and Thursday's economic data will. As long as the major stock index remain fairly calm, mortgage rates will l ikely follow suit.

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.