Monday News On Today's Mortgage Rates 5-1-2017

By James Brooks

The bond market is down 4/32 (2.32%), which should increase today's mortgage pricing by .125 of a discount point.

The week started with two relevant economic reports this morning. The first was March's Personal Income and Outlays data at 8:30 AM ET. The Commerce Department said that personal income rose 0.2% and that spending was unchanged. Both readings were 0.1% weaker than forecasts, meaning consumers earned less than expected and spent less than thought. That makes the data good news for bonds and mortgage rates.

April's Institute for Supply Management's (ISM) manufacturing index was the other, coming at 10:00 AM ET. They announced a reading of 54.8 that fell well short of the 56.5 that was expected. This indicates fewer surveyed manufacturers felt business improved during the month than analysts were expecting this month and that business worsened since last month. As another sign of softer economic activity, this is also favorable news for the bond and mortgage markets. Unfortunately, the bond market appears to have run out of momentum as we are seeing little reaction to this highly important report.

Tomorrow has nothing in terms of events that we need to be concerned with, but the rest of the week has four more reports, one of which is extremely important, along with another FOMC meeting. The number of reports and the importance of some of the data leads me to believe it is going to be a very active week for the financial and mortgage markets.

Overall, the single most important day of the week is Friday (Employment report) or Wednesday (FOMC meeting). Tomorrow is the best candidate for lightest day, although we could see some pre-FOMC movement. Due to the significance of some of this week's data, I highly recommend maintaining contact with your mortgage professional this week if 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.

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