Monday Mortgage Rate News 6-5-2017
By James Brooks
The bond market is down 6/32 (2.17%), which should push Raleigh Triangle area mortgage rates higher by approximately .125 of a discount point.
The first of today?s two economic releases was revised 1st Quarter Productivity and Costs data at 8:30 AM ET. It showed that productivity was unchanged during the quarter, up from the 0.6% decline that was previously released. Today?s early release also showed that labor costs rose only 2.2%, compared to the 2.4% that was expected and 3.0% in the preliminary estimate. Both readings are favorable for bonds and mortgage rates. However, this report doesn?t carry enough importance to offset the negative tone in bonds this morning.
Also posted this morning was April?s Factory Orders report from the Commerce Department. They announced at 10:00 AM that new orders for durable and non-durable goods fell 0.2% in April, matching forecasts. The news points towards a flat manufacturing sector, making the data neutral for bonds and mortgage rates.
There is nothing of relevance set for tomorrow. The rest of the week will likely be driven by non-economic factors. One key event is former FBI Director James Comey?s expected Senate testimony Thursday that will be center stage. If he does testify, we can expect the markets to have some type of reaction to the proceedings. It is more likely that we will hear things that will be bond favorable, but how strong of a reaction they will have remains to be seen.
Overall, today is a good possibility of being the most active day for mortgage rates but Thursday also is a day that we may see noticeable movement in rates as a result of news out of Washington. The calmest day could be any other day with so little on the calendar. Despite the light week, it is still recommended to 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... Float if my closing was taking place over 60 days from now.