Rate Lock Advisory

Monday, October 19th

Monday’s bond market has opened in negative territory, due mostly to weekend headlines about progress on another stimulus package that would be good news for the economy. Stocks are fairly calm with minor gains of 25 points in the Dow and 35 points in the Nasdaq. The bond market is currently down 8/32 (0.77%), but we likely will see little change in this morning’s mortgage rates.



30 yr - 0.77%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock




There is nothing of relevance set for release today. The rest of the week brings us four monthly economic reports that we will be watching in addition to a Treasury auction that has the potential to move rates also. Besides the economic data, corporate earnings news may also come into play this week.



Housing Starts (New Residential Construction)

September's Housing Starts is the first, set for release at 8:30 AM ET tomorrow. This Commerce Department report will probably not have a heavy impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and future mortgage credit demand by tracking construction starts of new homes but is usually considered to be of low importance to the financial and mortgage markets. It is expected to show an increase in new home starts between August and September, pointing to strength in the housing sector. We need to see a significant surprise in this data for it to have a noticeable influence on mortgage rates.



Corporate Earnings

Overall, no day stands out as a clear choice for most important of the week. Thursday is a possibility with two monthly releases and the weekly unemployment update all scheduled, but Wednesday afternoon could see some movement also. Friday is a decent candidate for calmest day for rates. Corporate earnings postings could affect the markets and mortgage rates any day this week. Despite the lack of any key economic data being posted, there still are plenty of events scheduled, meaning we could still see multiple days with a noticeable change in mortgage pricing.

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.