Good Day For Mortgage Rates 2-23-2018
By James Brooks
The bond market is up 12/32 (2.87%), which should improve Raleigh Area mortgage rates by .250 of a discount point.
Yesterday?s 7-year Treasury Note auction went a little better than Wednesday?s sale did but still was in the average category for describing investor demand. Results were posted at 1:00 PM ET yesterday and we saw little reaction in the bond market, meaning it had not impact on mortgage pricing. The 10-year Note and 30-year Bond sales that will take place in a couple of weeks are likely to have a stronger influence on rates.
There is nothing scheduled for today in terms of economic reports or other related releases that are expected to affect bond trading or mortgage pricing. There are several speaking engagements by current Fed members throughout the day that have the potential to do so. They always draw attention but often no reaction. If the speeches say anything unexpected, particularly about monetary policy and this year?s rate hikes, we could see their words move markets enough to slightly change mortgage rates. But it is more likely that these will be a non-factor in today?s mortgage rates.
Next week has a very busy calendar with relevant economic data posted every day, some of which is highly important. Also taking place is the new Fed Chairman Powell?s first semi-annual testimony updating congress on the economy and monetary policy. That event will be a primary focus of an already busy week. We do have a minor release set for Monday- January?s New Home Sales.
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...