February 10th, 2017 11:52 AM by T. Fanning
Last Updated: 2/10/17Friday's bond market has opened in negative territory despite weaker than expected economic news. The major stock indexes are showing relatively minor gains of 42 points in the Dow and 8 points in the Nasdaq. The bond market is currently down 5/32 (2.41%), which will likely push this morning's mortgage rates higher by approximately .125 of a discount point than Thursday's morning pricing.Yesterday's 30-year Bond auction went fairly well with several benchmarks indicating a decent interest in the securities. Despite the favorable results, bonds did not improve during afternoon trading. In fact, they slowly moved slightly lower into the close. It was enough of a change for some lenders to revise rates higher intraday, but I suspect most waited until this morning to reflect the move.Today's only relevant economic data was February's University of Michigan's Index of Consumer Sentiment. It came in at 95.7, falling short of expectations and January's final reading. Analysts were expecting to see a 98.0 reading following January's 98.5. This decline means surveyed consumers were less optimistic about their own financial and employment situations than many had thought. Since waning confidence usually translates into softer consumer spending levels, we can consider the data good news for bonds and mortgage rates. Unfortunately, this is only a moderately important report, so its impact on today's trading has been minimal.Next week is going to be pretty active in terms of mortgage rate-relevant data and other events. There are some important pieces of economic data scheduled, including a key measure of consumer spending and two inflation readings. The big news though will likely be Fed Chair Janet Yellen's semi-annual congressional testimony over two days. There is nothing on tap for Monday that is of concern. Look for details on all of next week's events 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...Lock 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
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.