Rate Lock Advisory

Tuesday, July 7th

Tuesday’s bond market has opened up slightly with stocks mixed and little else to drive trading this morning. The Dow is down 158 points while the Nasdaq is up 4 points. The bond market is currently up 1/32 (0.67%), but strength in mortgage bonds late yesterday should improve this morning’s mortgage rates by approximately .125 - .250 of a discount point if comparing to Monday’s early pricing.



30 yr - 0.67%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Bond Trends

There is nothing on today’s calendar that is likely to influence mortgage rates. The overall positive tone in the bond market continues to push mortgage rates lower in small increments. We don’t have much to be concerned with the rest of the week, with exception to the weekly unemployment update Thursday morning and an inflation index (PPI) Friday morning. Until we get to those events, don’t be surprised to see bonds and rates hold near current levels or possibly move slightly lower.



Treasury Auctions (5,7,10,20,30 year securities)

Tomorrow morning also has nothing of importance scheduled, but we do have the first of this week’s two Treasury auctions taking place that may affect mortgage rates. 10-year Treasury Notes will be sold tomorrow followed by 30-year Bonds Thursday. These sales don’t directly impact mortgage rates but can affect the broader bond market that trickles into mortgage bonds. If investor demand was high for these securities, we may see bonds rally during afternoon trading tomorrow and/or Thursday. However, weak interest in the sales could lead to bond selling and a possible increase in mortgage rates. Results will be posted at 1:00 PM ET on the sale days, meaning if there is a reaction, it will come during early afternoon hours.

Float / Lock Recommendation

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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.