Rate Lock Advisory

Wednesday, July 8th

Wednesday’s bond market has opened in negative territory, reversing gains from yesterday. The major stock indexes are showing gains with the Dow up 207 points and the Nasdaq up 119 points. The bond market is currently down 9/32 (0.66%), but strength late yesterday should keep this morning’s mortgage rates close to Tuesday’s early pricing. As bonds rallied yesterday afternoon, some lenders revised pricing lower before close. If you saw an intraday improvement, you likely will see an increase this morning of the same amount.

9/32


Bonds


30 yr - 0.66%

207


Dow


26,097

119


NASDAQ


10,463

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Medium


Unknown


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

There is no economic data set for release today that we need to be concerned with. We do have the 10-year Treasury Note auction taking place though. 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 the securities, we may see bonds rally during afternoon trading. However, weak interest in the sales could lead to bond selling and a possible increase in mortgage rates later today. Results will be posted at 1:00 PM ET, meaning if there is a reaction, it will come during early afternoon hours.

High


Unknown


Weekly Unemployment Claims (every Thursday)

Tomorrow’s sole economic report is last week’s unemployment update at 8:30 AM ET. It is expected to show that 1.35 million new claims for unemployment benefits were filed last week, down from the previous week’s 1.427 million filings. A high number of new claims signals a weak employment sector. Therefore, the larger the number, the better the news it is for mortgage rates.

Medium


Unknown


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

Also tomorrow is the 30-year Bond auction. As with today’s sale, results will be posted at 1:00 PM ET, making this an afternoon event tomorrow. The 10-year Note sale usually influences rates a little more than the 30-year Bond auction does, but both are considered moderately important.

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.


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