Today's News Improves Mortgage Rates 9-5-2017
By James Brooks
The bond market is up 14/32 (2.10%), which should improve Raleigh area mortgage rates by approximately .250 of a discount point.
July's Factory Orders data was posted at 10:00 AM ET this morning. The release showed a 3.3% decline in new orders at U.S. factories, nearly matching expectations. This data covers both durable and non-durable goods. Because this is only a moderately important report that almost pegged forecasts, it has had no influence on this morning?s bond trading or mortgage pricing.
Tomorrow morning has no relevant economic data being release, but does brings us an afternoon event to watch. The Federal Reserve will release its Beige Book report at 2:00 PM ET tomorrow. This report details current economic conditions in the U.S. by Federal Reserve regions. It is believed to be a key source of data when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises or changes from the previous release, we may see movement in the markets and mortgage pricing as analysts adjust their theories on the Fed's likelihood of raising short-term interest rates before the end of the year.
Overall, the most active day of the week for mortgage rates will probably end up being today unless something happens on the N. Korea issue. The rest of the week carries the same importance and likelihood of volatility since there is little else being posted. Despite the lack of significant economic data, it still would be prudent to maintain contact with your mortgage professional if still floating and 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... 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.