March 17th, 2017 1:21 PM by T. Fanning
Last Updated: 3/17/17Friday's bond market has opened in positive territory despite mostly stronger than expected economic data. The major stock indexes are nearly unchanged with the Dow down 1 points and the Nasdaq down 3 points. The bond market is currently up 9/32 (2.50%) which should improve this morning's mortgage rates by approximately.125 of a discount point.The first of this morning's three economic reports was February's Industrial Production report at 9:15 AM ET. It showed now change from January's level, falling short of the 0.2% increase that was expected. This means that output at U.S. factories, mines and utilities was lighter than many had thought. Because that indicates the manufacturing sector may be flat, we can consider the data good news for bonds and mortgage rates.Next up was the University of Michigan's Index of Consumer Sentiment for March. They announced a reading of 97.6, exceeding forecasts of 96.8. This was also an increase from February's 96.3, meaning consumers felt better about their own financial situations than they did last month. Since higher levels of confidence usually translate into stronger consumer spending, this report is a negative for mortgage rates.The final report of the week was February's Leading Economic Indicators (LEI). The Conference Board announced a 0.6% rise in the indicators, meaning they are predicting moderate economic growth over the next several months. Analysts were expecting to see a 0.5% rise, so this report also should be considered unfavorable for bonds and mortgage rates.Next week has only a couple of relevant economic reports scheduled for release, none of which are set for Monday. It is a much lighter week than this one was in terms of data and other events that are likely to influence mortgage rates. 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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