More Movement In Today's Mortgage Rates 3-29-2017
By James Brooks
The bond market is currently up 3/32 (2.40%), but due to heavy selling yesterday afternoon, we still should see an increase in today's mortgage rates of approximately .125 of a discount point.
Yesterday?s 5-year Treasury Note auction didn?t go wonderfully but wasn?t too bad either. The benchmarks we use to gauge investor demand showed an average level of interest in the securities. The bond market selling came in two batches but they did not coincide with the results of the auction being posted. Therefore, we cannot blame it on the sale. However, the results don?t give us too much to be optimistic about in today?s 7-year Note auction. Its results will be posted at 1:00 PM ET, so any reaction will come during early afternoon trading. A strong demand in the securities would be good news for the broader bond market and mortgage rates.
There is no relevant economic data scheduled for release today. News from overseas that Britain has officially started the process to withdraw from the European Union appears to be the focus of the markets this morning. We do have a couple of Fed speaking engagements taking place today, so we will be looking for any surprises to come from them to have an impact on the bond and mortgage markets.
Tomorrow has two relatively minor pieces of economic data scheduled for release. The first is the final revision to the 4th Quarter GDP at 8:30 AM ET. The Gross Domestic Product is the total of all goods and services produced in the U.S. and is the benchmark measurement of economic activity. It is expected to show that the economy grew at an annual pace of 2.0% last quarter, up slightly from the previous estimate of 1.9% that was released last month. Analysts are now more concerned with next month's preliminary reading of the 1st quarter than data from three to six months ago. So, unless we see a significant revision, this report probably will have little impact on tomorrow?s mortgage rates.
The other piece of economic data will be last week's unemployment figures, also at 8:30 AM ET. They are expected to show that 245,000 new claims for unemployment benefits were filed last week, down from the previous week?s 258,000 initial claims. This report usually doesn't cause much movement in the markets or mortgage rates unless it shows a significant jump or drop in initial claims for benefits. The higher the number of claims, the better the news it is for bonds and mortgage rates since rising claims is a sign of employment sector weakness.
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... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.