Monday Mortgage Rate News 5-8-2017
By James Brooks
The bond market is down 6/32 (2.37%), which should increase today's mortgage rates by .125 of a discount point.
There is nothing of importance scheduled for release today or tomorrow. The rest of the week brings us four economic reports that have the potential to influence mortgage rates. Three of the reports are considered to be of elevated importance to the bond market and therefore mortgage rates. This raises the possibility of seeing noticeable movement in rates multiple days this week.
Before we get to the week's economic reports, we have to deal with a couple of Treasury auctions. The Treasury will hold a 10-year Note sale Wednesday and a 30-year Bond sale Thursday. Results of the auctions will be posted at 1:00 PM ET each day. If they are met with a strong demand from investors, we could see bond prices rise enough during afternoon trading to cause downward revisions to mortgage rates. However, lackluster bidding in the sales, meaning longer-term securities are losing their appeal, could lead to higher mortgage pricing those afternoons.
Overall, the calmest day for mortgage rates will likely be tomorrow while the best candidate for most active day is Friday with three reports set to be posted. We also need to watch stocks for mortgage rate movement. Generally speaking, stock weakness usually makes bonds more attractive while stock gains tend to draw funds from bonds, leading to higher mortgage rates. It will likely be another active week for mortgage rates, particularly as the week progresses. Therefore, please maintain contact with your mortgage professional if still floating an interest rate and closing in the near future.
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... Lock if my closing was taking place over 60 days from now.