September 29th, 2017 9:11 PM by T. Fanning
Last Updated: 9/29/17Friday's bond market has opened in negative territory despite economic news that was more favorable than unfavorable. Stocks are mixed with the Dow down 22 points and the Nasdaq up 12 points. The bond market is currently down 4/32 (2.32%), but strength late yesterday should still allow this morning's mortgage rates to be approximately .125 of a discount point lower than Thursday's morning pricing.Yesterday's 7-year Treasury Note auction went well with several benchmarks pointing towards strong investor interest. Bonds had already improved before results were posted at 1:00 PM ET, but did extend that move afterward. That led to many lenders improving mortgage pricing before the end of the day.There were two economic reports posted this morning, beginning with August's Personal Income and Outlays at 8:30 AM ET. The Commerce Department announced that personal income rose 0.2% while spending increased 0.1%. These matched expectations, but a secondary reading that tracks consumer level inflation came in a little lighter than forecasts. That allows us to consider the data good news for bonds and mortgage rates. Also released this morning was the University of Michigan's revised Index of Consumer Sentiment for September. It came in at 95.1, falling short of the 95.3 that forecasts were calling for. This means surveyed consumers were slightly less optimistic about their own financial situations than earlier in the month. By theory, that is good news for bonds because waning confidence usually means weaker levels of consumer spending. However, this is only a small variance in a moderately important report. Accordingly, we have not seen much a reaction to the news.Next week doesn't have too many relevant reports scheduled, but most of what will be released is considered important or highly important. It starts with September's Institute of Supply Management's (ISM) manufacturing index late Monday morning. The week will close with the almighty monthly Employment report Friday. Look for details on all of next week's releases 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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