February 17th, 2017 10:56 AM by T. Fanning
Last Updated: 2/17/17Friday's bond market has opened in positive territory with stocks showing minor losses and no significant surprises in today's only economic data. The Dow is currently down 45 points while the Nasdaq has slipped 1 point. The bond market is currently up 11/32 (2.40%), which should improve this morning's mortgage rates by approximately .250 of a discount point from Thursday's morning pricing. Some lenders improved rates yesterday afternoon as bonds improved, so if your lender did revise lower intraday yesterday, you should see less of an improvement this morning.The benchmark 10-year Treasury Note yield continues to move away from 2.50% after breaking it twice Wednesday. This is very good news for mortgage shoppers as it appears that threshold is a very strong point of resistance. This trend could continue until it gets into the mid 2.2's, meaning there is still room for rates to improve from current levels because mortgage pricing tends to track bond yields. However, I say that with caution and recommend proceeding carefully if still floating an interest rate and closing in the near future.Today's only economic data was January's Leading Economic Indicators (LEI) that showed a 0.6% increase. This was slightly stronger than the 0.5% that was expected. The rise indicates potential economic growth over the next several months. However, this is not considered to be a highly important piece of data, so its influence on today's trading has been minimal.The financial markets will be closed Monday for the President's Day holiday. You will likely find many mortgage companies open for business, but will probably be using today's rates or not accepting new rate locks. There is no early close in today's trading.Next week does not have much to be concerned with. There are a couple of minor economic reports, two potentially relevant Treasury auctions and the minutes from the most recent FOMC meeting. Look for details on next week's calendar 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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