October 28th, 2016 11:25 AM by T. Fanning
Last Updated: 10/28/16Friday's bond market has opened relatively flat following the release of mixed economic data. The major stock indexes are showing fairly minor gains of 39 points in the Dow and 1 point in the Nasdaq. The bond market is currently up 1/32 (1.84%), which with some strength late yesterday should slightly improve this morning's mortgage rates if comparing to Thursday's morning pricing.The biggest of this morning's three economic report was the preliminary reading of the 3rd Quarter Gross Domestic Product (GDP) at 8:30 AM ET. It came in at up 2.9%, stronger than the 2.5% that was expected and higher than the 2nd Quarter's final reading of 1.4%. This means that the economic was stronger during the July through August months than many had thought. Because bonds tend to thrive in weaker economic conditions, the report is considered bad news for bonds and mortgage rates.Also at 8:30 AM this morning was the 3rd Quarter Employment Cost Index (ECI). It showed a 0.6% increase in employer costs for wages and benefits, matching forecasts. This report had no impact on today's mortgage rates since it failed to show any surprises and is generally considered to be of low importance to the bond and mortgage markets.The final report of the week was the University of Michigan's revised Index of Consumer Sentiment for October. They announced a reading of 87.2 that fell short of the 88.3 that was expected. More importantly, it was a decline from the previous reading of 87.9, indicating consumer confidence is slipping. That is good news for mortgage rates because waning confidence usually translates into softer levels of consumer spending that fuels economic growth.Next week is going to be an active week in terms of relevant economic releases and other events that may influence the markets and mortgage rates. It starts with Monday's release of Personal Income and Outlays report that certainly can affect mortgage pricing. The rest of the week brings us plenty of data, including a couple of highly important reports and an FOMC meeting. 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...Lock if my closing were taking place between 8 and 20 days...Lock 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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