Tuesday Surprise Move On Mortgage Rates 6-6-2017

By James Brooks

The bond market is currently up 10/32 (2.14%), which should improve Raleigh Triangle area mortgage rates higher by approximately .125 of a discount point.

What is driving today's bond rally is news from China that indicates they may be buying more U.S. securities in the immediate future. It was believed China, the largest holder of U.S. debt, was selling holdings. So, the news of new buying should help keep bond yields lower in the near future. Since mortgage rates tend to track bond yields, we are seeing a positive reaction in Raleigh Triangle area trading and mortgage pricing.

The rest of the week has little scheduled for release that may affect mortgage rates. There are no monthly or quarterly economic reports scheduled the rest of the week, leaving outside factors to be the biggest influence on the bond and mortgage markets the next few days.

One key event will be former FBI Director James Comey?s expected Senate testimony Thursday. If he does testify, we can expect the markets to have some type of reaction to the proceedings. It is more likely that we will hear things that will be bond favorable, but how strong of a reaction they will have remains to be seen.

Despite the light week, it is still recommended to maintain contact with your mortgage professional if still floating an interest rate and closing in the near future. As we saw this morning, the unexpected can happen at any time and have a noticeable impact on rates.

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... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

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