Improvement In Mortgage Rates 10-10-2017

By James Brooks

The bond market is up 9/32 (2.33%), which should improve Raleigh area mortgage rates by approximately .125 of a discount point.

There is nothing of importance being released today. The rest of the week brings us four economic reports for the markets to digest over four trading days, most of which is considered important data. In addition to that data, there are two Treasury auctions that certainly have the potential to affect mortgage rates and the minutes from the last FOMC meeting.

Tomorrow doesn?t have an economic report scheduled, but does have the first of this week's two important Treasury auctions. The sale of 10-year Notes will be held tomorrow while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms participating prepare for them. However, as long as the auctions are met with decent demand from investors, the firms usually buy them back. This tends to help recover any presale losses. But, if the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lower after the results are posted and mortgage rates may move higher. Those results will be announced at 1:00 PM each sale day, so any reaction will come during early afternoon trading.

Also tomorrow afternoon will be the release of the minutes from the most recent FOMC meeting. These may move the markets or could be a non-factor, depending on what they say. The key points traders are looking for are concerns over our and the global economies, inflation, reducing the Fed?s balance sheet and the Fed's next monetary policy move (rate hike). It is worth noting though that the last FOMC meeting was followed by revised economic predictions and a press conference with Fed Chair Yellen. Therefore, the likelihood of seeing a significant surprise in the minutes is relatively low. They will be posted at 2:00 PM ET.

Overall, it appears Friday is an easy label for the most important day of the week with two highly important reports being posted, although Thursday could be active also. Please maintain contact with your mortgage professional if still floating an interest rate because this will probably be a pretty active week for the financial and mortgage markets.

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.

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