Rate Lock Advisory

Thursday, September 19th

Thursday’s bond market has opened in positive territory despite mixed results in today’s relatively minor economic reports. The major stock indexes are showing moderate gains, pushing the Dow higher by 54 points and the Nasdaq up 44 points. The bond market is currently up 10/32 (1.76%), which should allow this morning’s mortgage rates to be slightly lower than Wednesday’s morning pricing.



30 yr - 1.76%







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

The National Association of Realtors gave us their Existing Home Sales report for August at 10:00 AM ET this morning. It showed that home resales rose 1.3% last month, reaching their highest level in almost a year and a half. The increase was stronger than forecasts that were calling of a modest decline in sales. Because a strengthening housing sector makes broader economic growth more likely, we should consider this data to be bad news for bonds and mortgage rates.



Leading Economic Indicators (LEI) from the Conference Board

Today’s other release and the final report of the week was August’s Leading Economic Indicators (LEI), also at 10:00 AM ET. The Conference Board announced no change from July’s level, falling just short of the 0.1% increase that was expected. Because these indicators attempt to predict economic activity over the next several months, the softer reading is favorable news for mortgage pricing.



Fed Talk

Tomorrow has nothing scheduled that is expected to affect mortgage rates except for a couple of speaking engagements by current Fed members throughout the day. These events can affect the markets if something unexpected is said about the economy or the Fed’s monetary policy plans but often are non-factors.

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.