Today's Mortgage Rates Slightly Higher 3-7-2016
By James Brooks
The bond market is down 5/32 (2.51%), which should push today's mortgage rates slightly higher.
Tomorrow has a couple events taking place that may influence mortgage rates. The first comes at 8:15 AM ET from payroll processor ADP who will announce their change in private-sector payrolls processed last month. Since it is not a government agency report, it isn't considered to be highly important. However, as with any employment-related data, it does draw some attention. This is especially true for this report because it is posted just a couple days before monthly employment figures are released by the Labor Department. I personally believe it is given more attention than it really deserves, particularly because many use it to predict the monthly government figures but often without success. Still, if it shows a noticeable variance from expectations, it will likely cause movement in the markets and mortgage rates. Forecasts are calling for it to show 180,000 new payrolls.
The second report of the day will be the revised Productivity index for the 4th Quarter of last year. The preliminary reading posted last month showed an increase of 1.3% in worker output. Analysts are expecting to see an upward revision of 0.2% to last month's initial reading. Employee productivity is watched fairly closely because a higher level of output per hour is believed to mean that the economy can expand without inflation concerns. However, since this data is quite aged now, it likely will have little impact on tomorrow's mortgage rates unless it shows a significant change.
Also tomorrow is the first of this week’s two Treasury auctions that are likely to affect mortgage rates. 10-year Treasury Notes will be sold tomorrow, followed by 30-year bonds Thursday. Results of both sales will be posted at 1:00 PM ET each day. If investor demand was high, we may see bonds rally during afternoon trading as it would hint that investors still have an appetite for longer-term securities. However, weak demand in the sales could lead to selling and an increase in mortgage rates late tomorrow and/or Thursday.
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.