Rate Lock Advisory

Friday, July 21th

Friday’s bond market has opened in positive territory, looking to close the week on a good note. Stocks are showing minor losses, pushing the Dow lower by 66 points while the Nasdaq is down 11 points. The bond market is currently up 5/32 (2.24%), which should keep this morning’s mortgage rates at yesterday’s levels.



30 yr - 2.24%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Bond Trends

Today has nothing of importance scheduled, so we can expect to see a fairly calm day for mortgage rates. The benchmark 10-year Treasury Note yield stands at a very important resistance point. If we close below the 2.25% level, it would give us great hope that mortgage rates will move lower. On the other hand, if that resistance is too strong, it’s a warning that mortgage rates are more likely to move higher in the immediate future than they are to move much lower. We do have some key events coming next week that carry enough importance to break that resistance level. However, that is assuming they bring us favorable results. Unfavorable results next week should easily push the 10-year back into the mid-2.3 range, causing mortgage rates to move higher.




Next week will be much busier than this week was with something scheduled every day that has the potential to affect mortgage rates. We also have another FOMC meeting taking place. Although, it is not expected to result in a bump to key short-term rates. Still, the meeting can easily cause a great deal of volatility in the markets. The rest of the agenda is wide ranging, from housing data to consumer sentiment readings and manufacturing strength. The key report will be the initial 2nd quarter GDP reading at the end of the week.



Existing Home Sales from National Assoc of Realtors

The week starts Monday with one of the moderately important releases. The National Association of Realtors will give us June’s Existing Home Sales late Monday morning. It tracks housing sector strength and mortgage credit demand. Look for details on it and the rest of the week’s activities 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.