Minor Increase In Today's Mortgage Rates 11-9-2017

By James Brooks

The bond market is currently down 4/32 (2.34%), we should increase Raleigh area mortgage rates by approximately .125 of a discount point.

Yesterday?s 10-year Treasury Note auction went pretty well, but bonds still managed to give up ground during afternoon trading. Despite that slide, we still remain optimistic about today?s 30-year Bond auction. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon trading. If it was met with a strong demand from investors, we could see the bond market move higher this afternoon, possibly leading to an improvement in mortgage rates. On the other hand, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds usually results in an upward revision to mortgage pricing.

Today?s only relevant economic data was last week's unemployment figures at 8:30 AM ET. They showed that 239,000 new claims for unemployment benefits were filed last week. They were expected to show that 231,000 new filings were made, meaning the employment sector was a little softer than thought last week. That is good news for bonds and mortgage rates. Unfortunately though, this is only a weekly snapshot. That means it does not carry enough significance to offset last night?s overnight weakness.

Tomorrow has this week?s sole monthly economic release at 10:00 AM ET. That is when November's preliminary reading of the University of Michigan's Index of Consumer Sentiment will be posted. This index measures consumer confidence, which gives us an indication of consumer willingness to spend. It is expected to show a reading of 100.4, down a little from October's final reading of 100.7. That would be considered positive news for bonds because rising sentiment means consumers are more optimistic about their own financial situations and are more likely to make large purchases in the near future. And with consumer spending so important, any related data is watched closely. The lower the reading, the better the news it is for mortgage shoppers.

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.

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