March 29th, 2019 12:16 PM by T. Fanning
Last Updated: 3/29/19Friday's bond market has opened in negative territory with stocks showing sizable gains and today's economic data mixed. The Dow is currently up 101 points while the Nasdaq has gained 44 points. The bond market is currently down 10/32 (2.42%), which should push this morning's mortgage rates slightly higher than Thursday's early pricing.Yesterday's 7-year Treasury Note auction was pretty strong with several of the benchmarks used to gauge investor demand showing a decent level of interest. The bond market reacted with an improvement right after the results were posted but gave back that move before the end of the day. The net impact on mortgage pricing was neutral.This morning's first report showed that February's personal income rose 0.2% while January's spending rose only 0.1%. Forecasts were calling for a 0.3% rise in both readings, making the data good news. Even the PCE index that the Fed relies on as an inflation indicator came in slightly lower than expectations. Weaker than expected income (ability to spend), spending (fuels economic growth) and inflation are all good signs for the bond market and mortgage rates.Today's second report was the University of Michigan's revised Index of Consumer Sentiment for March at 10:00 AM ET. They announced a read of 98.4 that was a bit higher than the preliminary reading of 97.8 and stronger than expectations. That indicates surveyed consumers felt better about their own financial and employment situations than thought. Because rising confidence usually means consumers are more apt to make a large purchase in the near future, we can consider the report negative for mortgage rates.February's New Home Sales was the final report of the week. The Commerce Department said at 10:00 AM ET that sales of newly constructed homes rose 4.9% last month, exceeding forecasts. That is a sign of housing sector strength, but since new homes are just a small portion of all home sales, the data is not considered to be highly influential. The increase means the data was unfavorable for bonds and mortgage rates although it has not had an impact on today's pricing.Next week brings us plenty of economic data to drive mortgage rates. We will get very important information on consumer spending, manufacturing strength and the employment sector. It starts with two reports Monday morning- Retail Sales and the ISM manufacturing index. And the week closes with the almighty monthly employment report. Look for details on those releases and the rest of the 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...Float 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
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.