Improvement For Today's Mortgage Rates 3-12-2018
By James Brooks
The bond market is up 5/32 (2.87%), which should improve Raleigh area rates by .125 of a doscount point.
Today doesn?t have any relevant economic data being posted, but we do have the first of this week?s two relevant Treasury auctions taking place today. 10-year Treasury Notes will be sold today, followed by 30-year bonds tomorrow. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon trading. If investor demand was strong, we may see bonds rally during afternoon trading as it would hint that investors still have an appetite for longer-term securities. However, weak demand in the sales could lead to selling and an increase in mortgage rates later today.
The rest of the week brings us plenty that may influence mortgage rates. We have six monthly reports for the bond market to digest, several of which are considered to be important. The most important reports will be released mid-week, so we may see more movement in mortgage rates those days. Therefore, there is a good chance of seeing mortgage rates move quite a bit this week.
February's Consumer Price Index (CPI) starts the week?s economic calendar at 8:30 AM ET tomorrow morning. It measures inflationary pressures at the very important consumer level of the economy. The overall CPI is expected to show a 0.2% increase as is the more important core data. The core data will draw more attention because it excludes more volatile food and energy prices, giving us a more stable reading of inflation. Good news for bonds and mortgage rates would be no change or a decline in the readings.
Overall, the most important day of the week is Wednesday with two important reports being posted, but tomorrow may be pretty active also. The calmest day is likely to be Thursday unless something unexpected happens, such as a significant stock rally or sell-off. With so much taking place this week, it would be prudent to keep an eye on the markets and maintain contact with your mortgage professional if still floating an interest rate.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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.