Rate Lock Advisory

Friday, January 19th

Friday’s bond market has opened in negative territory despite weaker than expected economic news. Stocks are mixed with the Dow down 42 points and the Nasdaq up 21 points. The bond market is currently down 4/32 (2.63%), which should push this morning’s mortgage rates higher by approximately .125 of a discount point. Next week does not bring us a large number of reports, but does have a couple of important releases late in the week, including the initial 4th quarter GDP reading. In addition to the data, there are two Treasury auctions that have the potential to affect rates slightly mid-week. Look for details on all of next week’s activities, along with relevant weekend news, in Sunday’s evening’s weekly preview.



30 yr - 2.63%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Geopolitical/Financial Issues

Overnight news out of Washington D.C. that the House passed a temporary spending bill hasn’t had much of an impact on today’s bond trading. There is question whether it will pass the Senate though. With the deadline of midnight tonight to avoid the first government shutdown since October 2013, we may see some movement intraday as rumors and updates hit the wires. However, I don’t believe we will see a noticeable impact on mortgage rates since this is only a temporary bill that pushes the issue until mid-February.



University of Michigan Consumer Sentiment (Prelim)

Today’s only relevant economic data was January's preliminary reading of the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. It came in at 94.4, falling short of expectations and December’s 95.9. Analysts were expecting to see an increase to 97.0, meaning surveyed consumers were less optimistic about their own financial situations than many had thought. That is good news for bonds and mortgage rates.

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.