Slight Movement In Today's Mortgage Rates 9-11-2017
By James Brooks
The bond market is down 7/32 (2.13%), which should cause an increase of approximately .125 of a discount point in Raleigh area mortgage rates.
There is nothing of importance set for release today. The rest of the week has five pieces of monthly economic data for the markets to digest, most of which is considered to be important. There are also two Treasury auctions that have the possibility to affect mortgage pricing. All of the relevant economic data comes the latter part, so we could see the most movement in rates as the week progresses.
Tomorrow has not relevant economic data either, but does bring us the first of two Treasury auctions that have the potential to influence mortgage rates. 10-year Treasury Notes will be auctioned tomorrow, followed by a 30-year Bond sale Wednesday. It is fairly common to see some weakness in bonds before these sales as investors prepare for them. If they are met with a decent demand from investors, indicating that interest in longer-term securities such as mortgage-related bonds is strengthening, the earlier losses are usually recovered after the results are announced. The results of each sale will be posted at 1:00 PM ET of auction day. If demand was strong, particularly from international investors, we should see mortgage rates improve during afternoon trading tomorrow and/or Wednesday. However, weak levels of interest could lead to broader selling in the bond market that could push mortgage rates higher.
Overall, Friday looks to be the most important day with three influential reports scheduled for release, but Wednesday or Thursday may also be pretty active. There is some pretty important data coming later this week, meaning we should see a pretty active week for mortgage rates. Therefore, please maintain contact with your mortgage professional if still floating 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.