Rate Lock Advisory

Tuesday, August 22th

Tuesday’s bond market has opened in negative territory with little to drive trading besides stock movement. The major stock indexes are in rally mode with the Dow up 119 points and the Nasdaq up 57 points. The bond market is currently down 7/32 (2.20%), which should push this morning’s mortgage rates higher by approximately .125 of a discount point.



30 yr - 2.20%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Stock Influences

There is nothing of importance set for today, so if we see an intraday change in mortgage pricing, it likely will be a result of a move in stocks. If stocks extend their current gains, pressure in bonds could lead to an upward revision in mortgage rates before the end of the day. On the other hand, if the major indexes give back a good part of this morning’s early move, bonds may improve and mortgage rates will probably follow suit.



New Home Sales

July's New Home Sales data is the first economic report of the week, coming tomorrow morning at 10:00 AM ET. This report will give us an indication of housing sector strength and mortgage credit demand, but tracks only a small portion of all home sales. The majority of U.S. home sales are covered in the upcoming Existing Home Sales report. This data usually doesn't have much of an impact on bond prices or mortgage rates. Current forecasts are calling for a small increase in sales of newly constructed homes from June to July. A large increase in sales would indicate housing sector strength, making the data negative for mortgage rates.

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... Lock 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.