Today's Mortgage Rate News 12-8-2017
By James Brooks
The bond market is down 3/32 (2.37%), which with yesterday?s afternoon weakness should cause Raleigh area mortgage rates to be slightly higher than Thursday?s morning pricing.
November's Employment report was posted at 8:30 AM ET this morning. It gave us several important readings on the employment sector, showing that the unemployment rate remained at 4.1% last month and that 228,000 new jobs were added to the economy. The unemployment rate matched forecasts but the payroll number was higher than expected (190k). There were also some revisions to October and September?s numbers, but the net difference over the two months was only 3,000 jobs and not relevant today. Still, this news only helped support the consensus that the Fed is going to raise key short-term interest rates next week.
The good part of the report was average earnings data. Analysts were expecting to see a 0.3% rise in earnings while today?s report revealed only a 0.2% increase. More good news came in a 0.1% downward revision to October?s earnings reading. The weaker than predicted earnings data eases inflation concerns that erode investor value in bonds. This news is preventing a negative reaction in the bond and mortgage markets.
Also released this morning was December's preliminary reading to the University of Michigan's Index of Consumer Sentiment. The 10:00 AM ET release showed a 96.8 reading that fell short of last month?s 98.5. That means that surveyed consumers were less optimistic about their own financial situations than thought. Forecasts were calling for a slight increase in sentiment. Because waning confidence usually translates into weaker levels of consumer spending, this reading was good news for bonds and mortgage rates.
Next week brings us the release of several important economic releases in addition to the last FOMC meeting of the year, which will also include revised economic projections and a press conference with Chair Janet Yellen. There is relevant data being posted every day except Monday.
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.