Today's Mortgage Rate News 3-13-2017

By James Brooks

The bond market is down 8/32 (2.60%), which should push today's mortgage rates by .125 of a discount point.

There is nothing of importance scheduled for today. This is the only day of the week that we don?t have something to watch that has the potential to influence mortgage rates. The rest of the week is very busy with seven monthly reports for the bond market to digest in addition to a Fed-filled afternoon. The most important reports and Fed events take place mid-week, so we should see the most movement in mortgage rates then.

February's Producer Price Index (PPI) will kick off this week?s calendar at 8:30 AM ET tomorrow morning. This important index measures inflationary pressures at the producer level of the economy. There are two portions of the index- the overall reading and the core data. The core data is more important and watched more closely because it excludes more volatile food and energy (such as gasoline) prices. If the index shows a large increase, inflation concerns will rise, making long-term investments such as mortgage-related bonds less attractive to investors. Rising inflation also could cause the Fed to make more rates hikes this year than previously expected. Therefore, increases larger than the 0.1% in the overall reading and 0.2% core reading that are expected would be bad news for mortgage rates.

Overall, Wednesday is the key day of the week due to the two morning highly important economic releases and the afternoon FOMC adjournment, economic projections and Fed press conference. There is a strong likelihood that we will see plenty of movement in the markets and mortgage rates this week. Accordingly, it would be prudent to 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... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now.

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