Another Bump In Today's Mortgage Rates 6-30-2017
By James Brooks
The bond market is down 8/32 (2.29%), which should increase Raleigh area mortgage rates by .125 of a discount point.
There were two economic reports released this morning. The first was May's Personal Income and Outlays data at 8:30 AM ET. The Commerce Department announced a 0.4% in the income reading and a 0.1% increase in spending. The income reading was a bit stronger than expected (0.3%), meaning consumers had more money to spend. However, the rise in spending matched forecasts. Therefore, we can consider the data neutral to slightly negative for bonds and mortgage rates.
The final relevant report of the week was the University of Michigan’s revised Index of Consumer Sentiment for June. It came in at 95.1, exceeding the 94.5 that was expected. The higher reading means surveyed consumers were more optimistic about their own financial and employment situations than many had thought. Since rising confidence usually translates into stronger levels of consumer spending, this is bad news for the bond and mortgage markets.
Next week is a holiday-shortened week that brings us some major economic data. The week starts with one of those highly important reports late Monday when June’s ISM manufacturing index will be released. The stock and bond markets will close early Monday ahead of the Independence Day holiday, but many traders will likely be out of the office as part of the long weekend. That could add to the volatility that the ISM report may cause.
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