Quiet Day For Mortgage Rates 11-8-2017
By James Brooks
The bond market is currently up 1/32 (2.31%), which should keep Raleigh area mortgage rates unchanged.
Today?s only relevant news comes this afternoon when the results of today?s 10-year Treasury Note auction. Results of the sale will be posted at 1:00 PM ET, so any reaction will come during early afternoon trading. If it was met with a strong demand from investors, we should see the bond market move higher this afternoon, possibly leading to an improvement in mortgage rates. On the other hand, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds usually result in upward revisions to mortgage pricing. This scenario will repeat again tomorrow when 30-year Bonds are sold.
Besides the auction, tomorrow also has last week's unemployment figures at 8:30 AM ET. They are forecasted to show that 231,000 new claims for unemployment benefits were filed last week, up slightly from the previous week?s 229,000 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. However, with so little on tap this week, we should see more of a reaction to a surprise than usual. The higher the number of claims, the better the news it is for bonds and mortgage rates since rising claims are 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.