No Change In Today's Mortgage Rate 12-18-2017
By James Brooks
The bond market is down 2/32 (2.37%), but strength late Friday should keep Raleigh area mortgage rates unchanged.
There is nothing of importance set for release today, the only day of the week without something relevant to mortgage rates scheduled. The rest of this holiday-shortened week has eight monthly and quarterly economic reports that we will be watching. None are considered key pieces of data, although several carry enough importance to cause changes to mortgage pricing if they show surprises.
November's Housing Starts will start the week?s calendar at 8:30 AM ET tomorrow morning. This data isn't known to be highly influential on bonds or mortgage pricing, but it does give us an indication of housing sector strength by tracking new home groundbreakings. Analysts are expecting to see a small drop in new home starts, indicating weakness in the new home portion of the housing sector. Slowing starts would be favorable for the bond market, although a wide variance is likely needed for the data to cause noticeable movement in the markets or mortgage rates Tuesday morning.
Overall, it is likely going to be another very active week for the financial and mortgage markets. The week starts off slow but picks up momentum quickly. Besides the couple of economic reports set for release the first half, we also have the tax reform vote that may come into play. The markets are expecting it to pass, so a vote in favor of it shouldn?t have too much of an impact on rates. However, any hint of a possible problem getting enough Senate votes in favor should fuel a bond rally. The week?s most important data comes late in the week, so we should get the most movement in rates those days. It is worth noting that the bond market will close early Friday afternoon ahead of next Monday?s Christmas Day holiday and will reopen Tuesday morning. With so much going on this week, it is strongly recommended that you 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... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.