Rate Lock Advisory

Friday, June 23th

Friday’s bond market has opened in negative territory to close the week. The major stock indexes are showing minor gains of 14 points in the Dow and 12 points in the Nasdaq. The bond market is currently down 3/32 (2.14%), which should push this morning’s mortgage rates slightly higher than Thursday’s early pricing.

3/32

Bonds

30 yr - 2.15%

14

Dow

21,411

12

NASDAQ

6,249

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Low

Negative

New Home Sales

May's New Home Sales data was released at 10:00 AM ET this morning. The Commerce Department announced that sales of newly constructed homes rose 2.9% last month. This was a smaller increase than was expected, so the headline number looks favorable for bonds and mortgage rates. However, a sizable upward revision to April’s sales skewed the increase percentage. The actual number of sales came in higher than expected, making the data negative for mortgage rates as it indicates a stronger housing sector.

Low

Neutral

None

Next week is much busier than this week was in terms of economic releases and other mortgage rate-relevant events. We have at least one economic report or Treasury auction set each day of the week, so we should see mortgage rates be more active next week.

High

Unknown

Durable Goods Orders

The week starts off with a pretty important report Monday morning when May’s Durable Goods Orders will be posted. It will give us some insight on the manufacturing sector and demand for big-ticket products. Look for details on it and the rest of the week’s activities that may affect mortgage rates in Sunday evening’s weekly preview.

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.