Mortgage Rates Move A Little On Today's News 11-10-2017
By James Brooks
The bond market is down 14/32 (2.38%), which should push Raleigh area mortgage rates higher by approximately .125 of a discount point.
Yesterday?s 30-year Treasury Bond auction followed suit of Wednesday?s 10-year sale, showing a decent level of investor interest. The bond market initially responded favorably once results were posted, but as the afternoon went on selling kicked in. That caused bond yields to rise and a few lenders to raise mortgage rates slightly before the end of the day. The selling wasn?t a result of the auction. With the recent rally in bonds we should expect some profit-taking to come into the market.
Today?s only economic data gave us favorable results. November's preliminary reading of the University of Michigan's Index of Consumer Sentiment came in at 97.8, falling short of the 100.4 that was forecasted. It was also a decline from October?s final reading, indicating that surveyed consumers did not feel as good about their own financial situations as they did last month. Because waning confidence usually translates into softer levels of consumer spending that fuels economic growth, we can consider the data positive for bonds and mortgage rates. However, this report is not important enough to offset the overnight weakness that took place.
Next week brings us a handful of relevant economic releases, some of which are very important. Among them are two important inflation readings and a measurement of consumer spending. The most influential data comes mid-week and there is nothing scheduled for Monday that we need to be concerned about.
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.