Rate Lock Advisory

Friday, June 9th

Friday’s bond market has opened in negative territory, erasing gains from mid-day yesterday. Stocks are showing strength, pushing the Dow up 94 points and the Nasdaq up 134 points. The bond market is currently down 13/32 (3.77%), which will cause this morning’s mortgage rates to be approximately .125 of a discount point higher than Thursday’s early pricing. If you saw an intraday improvement yesterday, you should see a larger upward move in this morning’s pricing.

13/32

Bonds

30 yr - 3.77%

Dow

33,928

134

NASDAQ

13,372

Mortgage Rate Trend

Trailing 90 Days - National Average

30 Year Fixed
15 Year Fixed
5/1 ARM

Indexes Affecting Rate Lock

Medium

Negative

None

There is no relevant economic data or other relevant events set for release today. We don’t see a clear indication of why bonds are in selling mode this morning. It may be just a lack of relevant data now forces traders to prepare for next week.

High

Unknown

Federal Open Market Committee (FOMC) Statement

Next week has plenty for the markets to digest, including several highly important economic releases and an FOMC meeting. The schedule starts Monday afternoon with the results of the 10-year Treasury Note auction and then progresses quickly in terms of importance and influence. The calendar includes two inflation indexes (CPI & PPI), a key measure of consumer spending and the much-anticipated FOMC meeting that includes revised economic projections. The bulk of the week’s activities are set for the middle days, meaning the most movement in rates should be midweek. Look for details on all of next week’s calendar 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.