Today's Mortgage Rates Improve 11-6-2017

By James Brooks

The bond market is up 5/32 (2.32%), along with Friday?s afternoon gains this should improve Raleigh area mortgage rates by .125 of a discount.

There is nothing scheduled for release today that is relevant to mortgage rates. If there is an intraday revision to mortgage pricing, it probably be a result of a move in stocks. Generally speaking, stock strength usually translates into bond weakness and higher mortgage rates. If stocks remain near current levels, bonds and mortgage rates will likely follow suit.

The rest of the week brings us little that is expected to affect mortgage rates. There is only one monthly report set to be posted in addition to a couple of Treasury auctions that can be influential. It is likely to be a much calmer week for the mortgage market compared to recent weeks.

The first events of the week will be the two important Treasury auctions Wednesday and Thursday. 10-year Treasury Notes will be sold Wednesday while 30-year Bonds go Thursday, giving us an indication of demand for long-term securities. If the sales are met with a strong demand from investors, we should see the bond market move higher during afternoon trading Wednesday and/or Thursday. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds would probably result in upward revisions to mortgage rates. Wednesday's 10-year Note auction usually has the bigger impact on rates than 30-year Bonds.

Overall, I am not expecting to see an overly active week for mortgage rates, although we should see movement more than one day. Wednesday is the best candidate for most important day due to the 10-year Treasury Note auction. We could see the markets get active at any time if stocks make a move upward or downward, so it is recommended that you still maintain contact with your mortgage professional if still floating an interest rate and closing soon.

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.

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