Rate Lock Advisory

Friday, July 19th

Friday’s bond market has opened in negative territory, extending yesterday’s late afternoon weakness. Stocks are showing early losses with the Dow down 178 points and the Nasdaq down 6 points. The bond market is currently down 12/32 (4.24%), which with yesterday’s late selling should push this morning’s mortgage rates higher by approximately .250 of a discount point compared to Thursday’s early pricing.



30 yr - 4.24%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Fed Talk

There is nothing of importance scheduled for today except potentially relevant Fed-member speeches at 10:40 AM and 1:00 PM ET today. Bond traders will be looking for hints about when the Fed may start cutting key short-term interest rates. Currently, the strong consensus is that it will not happen at this month’s FOMC meeting but is highly likely to come at September’s meeting. Any comments that contradict that theory could cause a reaction in trading today.



Gross Domestic Product (GDP)

Next week brings us several economic reports that are known to be highly influential to the markets and mortgage rates. The week has at least one item scheduled every day except Monday with the most important reports coming during the latter days. We will get the initial 2nd Quarter GDP reading, an important manufacturing index and another that includes the Fed’s preferred inflation index. Other listed reports are mostly housing related and of less importance. There are also a couple of Treasury auctions midweek that will come into play during afternoon hours. Look for details on all of next week’s relevant activities 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.