Another Rise In Today's Mortgage Rates 3-9-2017

By James Brooks

The bond market is down 9/32 (2.59%), which should push today's mortgage rates higher by approximately .125 of a discount point.

We saw mortgage bonds improve a little yesterday afternoon after results of the 10-year Treasury auction were posted. Unfortunately, today's selling erases that move. Yesterday’s auction went pretty well with the benchmarks showing a decent level of investor interest in the securities. That allows us to remain optimistic about today’s 30-year Bond auction. If investor demand is high for these securities also, we could see bond and mortgage pricing improvement later today. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon hours.

Today’s only economic data was last week’s unemployment update at 8:30 AM ET. It showed that 243,000 new claims for unemployment benefits were filed last week, up from 223,000 the previous week. Analysts were expecting to see 240,000 new claims. Since rising claims is a sign of a softening employment sector, we can consider this news to be favorable for bonds and mortgage rates. Unfortunately, today’s release is not considered to be of high importance, limiting its influence on today's mortgage pricing.

Tomorrow brings us the almighty monthly Employment report form the Labor Department. They will release February's Employment report at 8:30 AM ET tomorrow. Some of the important portions of the report will give us the unemployment rate, number of new jobs added or lost and the average hourly earnings reading. The best combination for the bond market and mortgage rates would be an increase in the unemployment rate, a much smaller increase in payrolls than expected and little or no increase in earnings. Current forecasts are calling for a 0.1% decline in the unemployment rate from January’s 4.8% and approximately 200,000 new jobs added to the economy. Stronger than expected readings will likely fuel a stock market rally and selling in bonds that would cause a sizable upward revision to mortgage rates. On the other hand, disappointing numbers would raise concerns about the economy's ability to continue to grow that would have an opposite impact on the markets and mortgage pricing.

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... Lock if my closing was taking place over 60 days from now.

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