No Change In Today's Mortgage Rates 2-13-2018

By James Brooks

The bond market is up 3/32 (2.84%), but weakness late yesterday will prevent much of an improvement in Raleigh area mortgage rates.

There is nothing scheduled for today that is relevant to mortgage rates. Unless stocks go into a major sell-off again or strong rally, there is no reason to believe we will see much movement in bonds or mortgage rates the rest of the day. However, the possibility of seeing a significant move in stocks is elevated after the recent volatility. Therefore, you may want to keep an eye on the markets if floating an interest rate and closing in the near future.

Tomorrow brings us the first two reports of the week and both are considered to be highly important. The Commerce Department will give us the first with the release January's Retail Sales data. This report is very important to the financial markets because it measures consumer spending. Since consumer spending makes up over two-thirds of the U.S. economy, any related data is watched quite closely. If tomorrow's report reveals weaker than expected retail-level sales, the bond market should thrive and mortgage rates will fall since it would be a sign that the economy is not growing as quickly as many had thought. However, a stronger reading than the 0.2% increase that is expected could lead to higher mortgage rates tomorrow morning.

Also at 8:30 AM ET tomorrow will be the release of January's Consumer Price Index (CPI). This index measures inflationary pressures at the consumer level of the economy. Its results can have a significant impact on the financial markets, especially on long-term securities such as mortgage-related bonds. There are concerns that inflation is starting to gain steam, so all related data is being watched very closely. Current inflation readings will influence the Fed's decisions regarding rate increases. The report is expected to show a 0.3% increase in the overall index and a 0.2% rise in the more important core data that excludes more volatile food and energy prices. If we see weaker than expected readings, bond prices should rise and mortgage rates would likely fall, assuming the Retail Sales report doesn't show surprising results.

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.

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