Good Day For Mortgage Rates 8-3-2017
By James Brooks
The bond market is currently up 7/32 (2.24%), which should improve Raleigh area mortgage rates slightly.
Last week?s unemployment figures were posted at 8:30 AM ET this morning. They revealed that 240,000 new claims for unemployment benefits were filed last week. That was down from the previous week?s revised 245,000 new filings and lower than the 242,000 that was forecasted. The decline in new claims is technically bad news, however, this is only a weekly report and the small variance wasn?t enough to affect this morning?s bond trading or mortgage pricing.
June's Factory Orders data was released at 10:00 AM ET, showing a 3.0% increase in new orders at U.S. factories. The increase indicates strength in the manufacturing sector, but was very close to the 2.9% rise that analysts were calling for. Therefore, it also has had little impact on this morning?s mortgage rates.
Tomorrow brings us the almighty monthly Employment report at 8:30 AM ET. This report gives us the U.S. unemployment rate, number of jobs added or lost during the month and average hourly earnings for July. The best scenario for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings. While some believe the preliminary reading to the GDP is the single most important report in general, it is posted quarterly rather than monthly like the Employment report. Tomorrow's report is expected to show that the unemployment rate inched lower last month 0.1% to 4.3% while approximately 181,000 jobs were added to the economy. Due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and mortgage pricing tomorrow if it shows any surprises.
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.