Slight Increase In Today's Mortgage Rates 4-5-2017

By James Brooks

The bond market is currently down 5/32 (2.37%), which should push
today's mortgage rates slightly higher.

March?s ADP Employment report was posted at 8:15 AM ET this morning,
revealing an increase of 263,000 private sector jobs. This was much
stronger than the 175,000 that was expected, giving a sign that the
private sector portion of the labor market is quickly gaining
strength. However, we are seeing somewhat of a muted response in bonds
because accompanying that headline number was a significant downward
revision to February?s payroll count of 53,000 jobs. If we see a
similar downward revision next month, March?s job count will be much
closer to expectations. It is worth noting that this is not a
governmental report, so it does have its share of skeptics. The
extremely important and potentially market moving Labor Department
report will come Friday morning.

We also have the minutes from the last FOMC meeting to watch this
afternoon. Market participants will be looking at them closely as they
give us insight to the Fed's current thought process and individual
Fed member opinions. Any surprises in the 2:00 PM ET release,
particularly about inflation, economic conditions, Fed balance sheet
intentions or when the next rate hike will take place, could cause
afternoon volatility in the markets and possible changes in mortgage
pricing this afternoon.

Tomorrow only has a minor weekly unemployment release that may
influence mortgage rates slightly. Last week?s unemployment figures
will be posted at 8:30 AM ET. They are expected to show that 245,000
new claims for benefits were filed, down from 258,000 of the previous
week. Ideally, we want to see a large increase in initial claims,
indicating employment sector weakness. The higher the number of
claims, the better the news it is for mortgage rates. It is worth
noting though that this is only a weekly snapshot, so I am not
expecting it to have much of an impact on tomorrow?s mortgage pricing.
Market focus will be on Friday monthly Employment report.

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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