March 15th, 2019 12:49 PM by T. Fanning
Last Updated: 3/15/19Friday's bond market has opened in positive territory despite mixed economic data. The major stock indexes are relatively calm but mixed with the Dow down 22 points and the Nasdaq up 36 points. The bond market is currently up 13/32 (2.58%), which should improve this morning's mortgage rates by almost .125 of a discount point.The first of this morning's two economic releases was February's Industrial Production at 9:15 AM ET. It showed a 0.1% rise in output at U.S. factories, mines and utilities. Analysts were expecting to see a 0.4% rise, indicating production at U.S. factories was weaker than thought. That makes the data favorable for bonds and mortgage rates.Also released this morning was the University of Michigan's Index of Consumer Sentiment for March. The preliminary March reading came in at 97.8, exceeding forecasts of 94.9. That was an increase from February's final reading of 93.8. The noticeable jump is bad news for mortgage rates because it indicates that consumers are more confident in their own financial situations and therefore, are more likely to make a large purchase in the near future. Since consumer spending makes up over two-thirds of the U.S. economy, any data that hints at stronger spending levels is bad news for bonds and mortgage rates. Fortunately, this is only a moderately important report and traders don't seem to be too concerned about its results this morning.Next week is pretty light in terms of the number of economic reports and other events scheduled that will likely affect mortgage rates. However, even though there are no highly important reports, we still may have an active week because there is another FOMC meeting taking place. All meetings going forward now include a press conference with Chairman Powell, but this one will also include revised economic projections. There is nothing of relevance set for Monday. Look for details on all of next week's activities in Sunday evening's weekly preview.If I were considering financing/refinancing a home, I would....Lock if my closing were taking place within 7 days...Float if my closing were taking place between 8 and 20 days...Float if my closing were taking place between 21 and 60 days...Float if my closing were taking place over 60 days from now...This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.**http://www.hlmcolorado.com/DailyRateAdvisory
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