Rate Lock Advisory

Monday, May 21th

Monday’s bond market has opened in negative territory as stocks start off the new week in rally mode. The major stock indexes are reacting positively to news of a truce in the trade tariff battle with China, pushing the Dow up 309 points and the Nasdaq up 67 points. The bond market is currently down 3/32 (3.07%), but due to strength late Friday, we should still see a slight improvement in this morning’s mortgage rates if comparing to Friday’s morning pricing. If your lender was one that revised lower during afternoon hours Friday, you may see a slight increase in this morning’s rates.



30 yr - 3.07%







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 importance scheduled for release today or tomorrow. The rest of the week brings us four pieces of economic data that may impact mortgage rates in addition to two Treasury auctions and the minutes from the latest FOMC meeting. None of the events are considered key or expected to be a market mover, but most of the reports carry enough importance to affect mortgage pricing if they show a decent sized variance from forecasts.




The first events of the week will come Wednesday when April's New Home Sales report is posted, the minutes from the most recent FOMC meeting are released and the 5-year Treasury Note auction concludes. The housing report will be posted late morning while the other two events will take place during afternoon trading Wednesday.



Bond Trends

Friday is the most important day of the week with two pieces of data being released, including the most important report of the week. Wednesday may also be pretty active with three events scheduled. Last week's bond volatility pushed the benchmark 10-year Treasury yield above level of 3.0%, closing at 3.06%. This was the highest we have seen in almost 7 years, bringing mortgage rates upward also. There is nothing set this week that is likely to rally bonds enough to break below 3.0%. That leaves us in a position that means mortgage rates are at risk of moving higher before they move much lower. Therefore, please proceed cautiously if still floating an interest rate and closing in the near future.

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.

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