Slight Improvement In Mortgage Rates 8-14-2017
By James Brooks
The bond market is up 1/32 (2.22%), but due to strength late Friday we still should see a slight improvement in mortgage rates.
There is nothing of importance being released or taking place today that has the potential to affect mortgage rates. The rest of the week brings us the five pieces of monthly economic data with one being considered highly important. In addition to the data, the minutes from the last FOMC meeting will also be posted.
The first report will be will be July's Retail Sales data at 8:30 AM ET tomorrow. This highly important report comes from the Commerce Department and will give us a measurement of consumer spending. Consumer level spending figures are extremely relevant to the markets because it makes up over two-thirds of the U.S. economy. Current forecasts are calling for a 0.3% increase in sales. Analysts are also calling for a 0.3% rise in sales if more volatile and costly auto transactions are excluded. Larger than expected increases would be considered bad news for bonds and likely lead to an increase in mortgage pricing since it would indicate stronger economic growth.
Overall, tomorrow is the best candidate to be the most active day of the week for mortgage rates due to the importance of the sales data. There are no other key pieces of economic data coning this week, but we still could see some movement in rates multiple days. Therefore, please maintain contact with your mortgage professional if still shorting 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.