Rate Lock Advisory

Monday, July 23th

Monday’s bond market has opened well in negative territory even though today’s sole piece of economic data showed favorable results and stocks are in negative ground. The major stock indexes are showing minor losses, pushing the Dow lower by 15 points and the Nasdaq down by 17 points. The bond market is currently down 10/32 (2.93%), which should cause this morning’s mortgage rates to come in approximately .250 of a discount point higher than Friday’s morning pricing.



30 yr - 2.93%







Mortgage Rate Trend

Trailing 90 Days - National Average

  • 30 Year Fixed
  • 15 Year Fixed
  • 5/1 ARM

Indexes Affecting Rate Lock



Existing Home Sales from National Assoc of Realtors

Today’s only relevant economic data was June's Existing Home Sales at 10:00 AM ET. The National Association of Realtors announced a 0.6% decline in home resales last month, falling short of forecasts. Analysts were expecting to see an increase in sales. The decline hints that the housing sector was not as strong as many had thought, making the data good news for bonds and mortgage rates. Unfortunately, this report is considered to be only moderately important, so its result have had little impact on today’s trading.




Tomorrow has nothing of importance scheduled for release. The rest of the week brings us the release of four more monthly or quarterly reports that may impact mortgage rates, one of which is considered to be highly influential while another is pretty important. In addition to the economic data, there are also a couple of Treasury auctions mid-week.




Overall, Friday has the best potential to be the most active day for mortgage rates due to the initial 2nd quarter GDP release, but Thursday may be pretty active also with Durable Goods Orders being posted. The calmest day could be tomorrow. Besides the economic releases and auctions, we also will be watching corporate earnings. There is a high number of companies reporting, including big names such as Google, Facebook, AT&T, Boeing and Amazon. Surprises in some of those earnings figures can heavily influence stocks, causing funds to move into or away from bonds. With so much on tap this week that may influence mortgage rates, it would be prudent maintain contact with your mortgage professional if still floating an interest rate and closing in the near future.

Float / Lock Recommendation

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.