Rate Lock Advisory

Monday, July 22th

Monday’s bond market has opened in positive territory with little to drive trading other than weekend election news. Stocks are split with the Dow down 57 points and the Nasdaq up 180 points. The bond market is currently up 6/32 (4.21%), which should improve this morning’s mortgage rates by .125 of a discount point.



30 yr - 4.21%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Gross Domestic Product (GDP)

There is nothing of importance scheduled for release today. The rest of the week has several important economic releases scheduled, including the first reading of the 2nd Quarter GDP and the Fed’s preferred inflation index. In addition to those reports there are a few of less importance scheduled, along with a couple of Treasury auctions and a slew of corporate earnings announcements.



Existing Home Sales from National Assoc of Realtors

The National Association of Realtors will start this week’s activities by posting their Existing Home Sales report for June at 10:00 AM ET tomorrow. They are expected to announce home resales fell last month by approximately 2.6%, hinting at further weakness in the housing sector. Housing weakness makes broader economic growth more difficult, meaning good news for rates would be a larger drop in sales.



Inflation News

Overall, Friday looks to be the most important day for rates due to the significance of the PCE inflation readings in the Personal Income and Outlays report, but Thursday is also likely to be active with the first GDP reading of the quarter and the manufacturing report both being released that morning. It will probably be a very active week for mortgage rates, especially the latter days. If still floating an interest rate and closing in the near future, it would be prudent to keep an eye on the markets as we could see big moves in rates multiple days.

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.