Wednesday's bond market opened well in positive territory but has since given back part of those gains. The stock markets are showing losses after yesterday's huge rally. The Dow is currently down 25 points while the Nasdaq has fallen 15 points. The bond market is currently up 17/32, which should improve this morning's mortgage rates by approximately .250 of a discount point. However, if bond prices continue to slip, we may see upward revisions to rates later today.

There is no relevant economic news scheduled for release today. The Conference Board will post its Leading Economic Indicators (LEI) for February late tomorrow morning. That index attempts to measure economic activity over the next three to six months. Current forecasts are calling for a 0.3% decline, indicating that economic activity will likely slow in the coming weeks. This would be good news for the bond market and mortgage rates.

The bond market will close early tomorrow and rem ain closed until Monday in observance of the Good Friday holiday. There is a possibility of seeing additional volatility in trading as investors prepare for the long weekend. Accordingly, I am holding the immediate and short-term lock recommendations.

Also worth noting was news that the regulatory agency that oversees mortgage giants Fannie Mae and Freddie Mac eased capital requirements for the two in an effort to free up more funds to purchase mortgage loans. Since they now need to set less money aside for reserves, they can purchase more loans, which in turn should help mortgage lenders fund more loans for borrowers. It is believed that the $200 billion may help the mortgage and housing markets and contribute to stabilizing the economy.

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.