Rate Lock Advisory

Friday, September 20th

Friday’s bond market has opened in positive territory, giving us hope to close the week on a good note. Stocks are showing moderate gains of 66 points in the Dow and 9 points in the Nasdaq. The bond market is currently up 4/32 (1.77%), but a little weakness late yesterday should keep this morning’s mortgage rates close to Thursday’s early pricing. If you saw an intraday upward revision yesterday afternoon, you may see a slight improvement this morning.



30 yr - 1.77%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock




There is nothing scheduled for release today that is expected to affect mortgage rates. We do have a couple of Fed member speaking engagements, but unless they tell us something that we don’t already know they will likely have little influence on mortgage rates today.



Bond Trends

It is worth noting that the benchmark 10-year Treasury Note yield appears to be stuck above 1.75%. There seems to be a strong resistance point there that is preventing it from breaking below. The problem with that is mortgage rates tend to track bond yields. Until that threshold is broken, it may be difficult for mortgage rates to move much lower and there is little scheduled over the next few business days to push it over the hump.




Next week brings us the release of several economic reports that have the potential to move rates. The most important reports are scheduled late in the week, so the early days may be the calmest. Monday’s calendar is empty, meaning weekend news and stock movement will likely drive bond trading and mortgage pricing as the new week begins. Look for details on all of next week’s events in Sunday evening’s weekly preview.

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... Float 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.