Improvement In Today's Mortgage Rates 11-2-2017
By James Brooks
The bond market is currently up 10/32 (2.34%), which should improve Raleigh Area mortgage rates by approximately .250 of a discount point if comparing to Wednesday?s morning pricing.
There were two minor economic reports released at 8:30 AM ET this morning. The 3rd Quarter Productivity reading showed that productivity grew at an annual rate of 3.0%, beating the 2.8% that was expected. However, a jump of 0.5% in the labor costs reading neutralizes the good news in the productivity gains. The net impact on mortgage rates is neutral.
The second release was last week?s unemployment figures that revealed 229,000 new claims were filed. This was a decline from the previous week?s revised 234,000 initial filings, hinting that the employment sector strengthened a little last week. Since analysts were expecting to see a small increase in claims, we should consider this data bad news for bonds and mortgage rates. Fortunately, it is only a weekly report, minimizing its influence on today's pricing.
Tomorrow brings us the release of October's Employment report at 8:30 AM ET. This major report is comprised of many statistics and readings, but the most important ones are the unemployment rate, the number of new jobs added or lost during the month and average hourly earnings. Current forecasts call for a 0.1% increase in the unemployment rate, rising from 4.2% to 4.3%. It is also expected to show an increase in payrolls of 320,000, rebounding from September?s surprising loss of 33,000 jobs. The third headline number is average earnings that is expected to reveal a 0.2% rise. Weaker than expected readings should renew concerns about the labor market and rally bonds enough to improve mortgage rates noticeably, especially if the stock markets react poorly to the news.
September's Factory Orders data will also be released tomorrow, but at 10:00 AM Et. This report is similar to last week's Durable Goods Orders report except it includes orders for both durable and non-durable goods. It is expected to show a 1.2% increase in new orders from August's level. A large decline would be good news for the bond market and mortgage rates while an unexpected rise would be bad news. However, it is worth noting though, that this report is not considered to be highly important to mortgage rates and it follows a major release. Therefore, it probably will not play a role in tomorrow?s 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... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.