Rate Lock Advisory

Friday, February 23th

Friday’s bond market has opened in positive territory again despite a lack of economic releases or other events to driving trading. The major stock indexes are also showing gains, pushing the Dow higher by 92 points and the Nasdaq up 31 points. The bond market is currently up 11/32 (2.88%), which should improve this morning’s mortgage rates by approximately .125 - .250 of a discount point.

11/32


Bonds


30 yr - 2.88%

92


Dow


25,054

31


NASDAQ


7,240

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Medium


Neutral


Treasury Auctions (5,7,10,30 year securities)

Yesterday’s 7-year Treasury Note auction went a little better than Wednesday’s sale did but still was in the average category for describing investor demand. Results were posted at 1:00 PM ET yesterday and we saw little reaction in the bond market, meaning it had not impact on mortgage pricing. The 10-year Note and 30-year Bond sales that will take place in a couple of weeks are likely to have a stronger influence on rates.

Low


Unknown


Fed Talk

There is nothing scheduled for today in terms of economic reports or other related releases that are expected to affect bond trading or mortgage pricing. There are several speaking engagements by current Fed members throughout the day that have the potential to do so. They always draw attention but often no reaction. If the speeches say anything unexpected, particularly about monetary policy and this year’s rate hikes, we could see their words move markets enough to slightly change mortgage rates. But it is more likely that these will be a non-factor in today’s mortgage rates.

High


Unknown


None

Next week has a very busy calendar with relevant economic data posted every day, some of which is highly important. Also taking place is the new Fed Chairman Powell’s first semi-annual testimony updating congress on the economy and monetary policy. That event will be a primary focus of an already busy week. We do have a minor release set for Monday- January’s New Home Sales. Look for details on all of next 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... 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.