Today's Mortgage Rates Edge Slightly Higher 6-8-2017
By James Brooks
The bond market is currently down 8/32 (2.19%), which should push Raleigh area mortgage rates higher by approximately .125 of a discount point.
today's only relevant economic news came at 8:30 AM ET when last week?s unemployment figures were posted. They showed that 245,000 new claims for unemployment benefits were filed last week. This was a decline from the previous week?s revised 255,000 and higher than the 240,000 that was expected, making the data good news for bonds and mortgage rates.
The big news today will come from Washington DC, where former FBI Director James Comey is testifying before the Senate Intelligence Committee. The markets will be watching today?s proceedings closely. His prepared statement was posted yesterday, giving us some insight as to what to expect from him today. There undoubtedly will be some testy moments. Not just between him and the committee, but also between committee members.
So, what can we expect from today?s event? Realistically, hearing anything that could lead to impeachment of President Trump is not likely. However, by no means does that mean this thing will not cause volatility in the markets. Stocks have rallied significantly since election night, based on the President?s pro-economic growth agenda. Him losing credibility over this matter could negatively impact his ability to get Congress to fund that agenda. Without his campaign promises coming to fruition, stocks could heavily pullback from their current levels, making bonds more attractive to investors.
It is safe to assume that we will see volatility throughout the day, possibly leading to some lenders making intraday revisions to mortgage rates before closing. Whether or not those are increases or improvements depends on how the hearing goes. If it appears to go in President Trump?s favor, bond weakness is the safe bet followed by upward revisions to mortgage pricing. On the other hand, if the proceedings look bad for the president, bonds will likely move higher, causing mortgage rates to move lower.
There is nothing of importance taking place tomorrow. We can expect fallout from today?s hearing and evening news to drive bond trading and mortgage pricing as the week comes to a close.
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... Float if my closing was taking place over 60 days from now.