Surprise Improvement For Mortgage Rates 12-15-2017
By James Brooks
The bond market is down 4/32 (2.36%), but we still should see a slight improvement in Raleigh area mortgage rates due to strength late yesterday.
We saw bonds bounce late yesterday as news spread that one or more Republican Senators may not vote in favor of the tax bill in its current form. Whether or not that is realistic remains to be seen, but just the possibility of there being a problem getting it passed caused bonds to improve Thursday afternoon, leading to many lenders improving rates before the end of the day. If your lender revised rates lower intraday yesterday, you likely will see an increase this morning.
November's Industrial Production data was released at 9:15 AM ET this morning. It showed a 0.2% increase in output at U.S. factories, mines and utilities. This was slightly lower than the 0.3% rise that was expected, making the data favorable for mortgage rates. However, this report is considered to be only moderately important. Therefore, its influence on this morning?s rates has been minimal.
Next week brings us a handful of relevant economic releases that may affect mortgage rates, but the most important data comes late in the week. There is nothing of relevance set for Monday, so expect weekend news to drive trading as the new week begins. Of particular interest will be news or rumor related to the tax reform bill, especially anything that hints that the bill may be in jeopardy of passing.
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.