September 16th, 2016 9:19 AM by T. Fanning
Last Updated: 9/16/16Friday's bond market has opened fairly flat following mixed economic news. The stock markets appear ready to close the week on a negative note with noticeable losses in the major indexes. The Dow is currently down 118 points while the Nasdaq has lost 25 points. The bond market is currently up 1/32 (1.69%), which should leave this morning's mortgage rates unchanged from Thursday's morning levels.There were two pieces of economic data posted this morning. The bad news came in the Consumer Price Index (CPI) for August that showed a 0.2% increase in the overall reading and a 0.3% rise in the more important core data. Both readings exceeded forecasts by 0.1%, meaning inflationary pressures were slightly stronger at the consumer level of the economy last month than was expected. That is bad news for bonds and mortgage rates because rising inflation makes long-term bonds less attractive to investors and also makes a Fed rate hike sooner than later more likely.Late this morning came the University of Michigan's Index of Consumer Sentiment for September, revealing a reading of 89.8 that fell short of forecasts. Analysts were expecting to see a reading of 91.5 that would have meant surveyed consumers were more optimistic about their own financial situations than they were in August. Because there was no rise in confidence, it is believed that consumers may not be as apt to make a large purchase in the near future. That would help limit economic growth, making the reading good news for bonds and mortgage rates.Next week is all about the Fed. There are a couple of housing related reports set for release, but the markets will be focused on Wednesday's FOMC meeting adjournment and the economic revisions that will be released followed by press conference with Fed Chair Janet Yellen. There is nothing of importance scheduled for Monday. Look for details on next 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...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
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