Little Change In Today's Mortgage Rates 11-13-2017
By James Brooks
The bond market is up 3/32 (2.38%), but due to weakness Friday afternoon we should see little change in mortgage rates.
There is nothing of relevance to mortgage rates taking place today. The rest of the week brings us the release of five pieces of economic data, several of which are considered very important to the markets. That raises the possibility of seeing noticeable movement in the bond market and mortgage rates over the next several days. If we see an intraday change to mortgage pricing today, it will likely be a reaction to a move in stocks.
The first of this week?s releases is October's Producer Price Index (PPI) at 8:30 AM ET tomorrow, which is one of the two key inflation readings on tap this week. There are two portions of the index that are used- the overall reading and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. Signs of rapidly rising inflation make long-term securities such as mortgage-related bonds less attractive to investors and leads to higher mortgage rates. The overall reading is expected to show a 0.1% rise from September's level while the core data is expected to rise 0.2%. Weaker than expected readings would be good news for bonds and mortgage rates, while a larger than forecasted increase in the core reading could lead to higher mortgage rates tomorrow morning.
Overall, it is likely going to be another active week for mortgage rates. The most movement is probably going to come the middle days, but we can see volatility any day. Therefore, please proceed cautiously if you are closing in the near future and 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... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.