Rate Lock Advisory

Friday, July 22th

Friday’s bond market has opened in negative territory again as the morning weakness trend continues. The major stock indexes are calm but mixed again also with the Dow down 8 points and the Nasdaq up 6 points. The bond market is currently down 7/32 (1.58%), but strength late yesterday should prevent an increase in today’s mortgage rates. If your lender improved rates intraday late yesterday, you should see an increase in this morning’s pricing of the same amount.

7/32


Bonds


30 yr - 1.58%

8


Dow


18,508

6


NASDAQ


5,080

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Medium


Neutral


Bond Trends

There is nothing of importance scheduled for release today, so we can turn towards stocks as the likely source of bond market and mortgage rate direction as the week comes to close. If stocks move higher from current levels, more pressure may build in bonds, leading to an intraday day increase in rates. On the other hand, if the major indexes weaken, bonds and mortgage shoppers could benefit.

Medium


Unknown


None

Next week is pretty active in terms of scheduled reports and events that may influence mortgage rates. There is a handful or monthly and quarterly reports set for release, although none are considered to be highly important. In addition to the economic data, we also have the two-day FOMC meeting and a couple of Treasury auctions that have the potential to come into play.

Low


Unknown


None

Monday is the only day of the week with nothing scheduled to take place. Therefore, we can expect weekend news and pre-FOMC positioning to have the biggest impact on Monday’s trading and mortgage pricing. Look for details about next week’s calendar 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.