Quiet Day For Mortgage Rates 9-15-2017

By James Brooks

The bond market is down 1/32 (2.20%), but we should see little change in Raleigh area mortgage rates.

The Commerce Department kicked off this morning?s batch of releases with August?s Retail Sales report. It revealed a 0.2% drop in consumer level spending last month, falling short of the 0.1% increase that was expected. A secondary reading that exclude more costly and volatile auto transactions also came in light (up 0.2% versus 0.5%). This data indicates that consumers spent less than thought last month, making the data good news for mortgage rates because weaker spending should translate into weaker overall economic growth.

August's Industrial Production data was second, coming at 9:15 AM ET. This data showed a 0.9% decline in production at U.S. factories, mines and utilities. That was well off from forecasts of a 0.2% increase, but the decline is being attributed to Hurricane Harvey and not a quickly softening industrial sector. Therefore, the news isn?t having an impact on bond trading or mortgage pricing.

The third report of the morning was the University of Michigan?s Index of Consumer Sentiment for September that came in at 95.3. That reading nearly matched expectations of 95.5 and was a decline from August?s final of 96.8. The decline in good news for mortgage rates waning confidence usually translates into weaker levels of consumer spending. However, because it was very close to forecasts and comes in a moderately important release, we have not seen much of a reaction to this news.

Next week bring us the release of little economic data, most of which is housing-related. What is of importance is the FOMC meeting mid-week that will include Fed economic projections and a press conference with Fed Chair Janet Yellen. There is nothing of importance scheduled for Monday, so weekend news and stock movement is likely to drive trading as the new week starts.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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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