Rate Lock Advisory

Friday, January 21th

Friday’s bond market has opened in positive territory again, keeping mortgage rates heading the right direction for now. Stocks are in selling mode with the Dow down 188 points and the Nasdaq down 227 points. The bond market is currently up 20/32 (1.74%), which should improve this morning’s mortgage rates by approximately .125 - .250 of a discount point.



30 yr - 1.74%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Leading Economic Indicators (LEI) from the Conference Board

December's Leading Economic Indicators (LEI) was today’s only semi-relevant data. The Conference Board announced a 0.8% rise in the indicators, meaning they are predicting moderate to strong growth in the economy over the next several months. Generally speaking, this is bad news for the bond market and mortgage rates. However, the rise matched forecasts, preventing an impact on this morning’s pricing.




Next week starts off light in terms of scheduled events that may affect mortgage rates, but the mid and latter days bring us some highly influential economic releases and FOMC activities. Some of the important items scheduled next week include the first FOMC meeting of the year, the initial 1st Quarter Gross Domestic Product reading (benchmark of economic activity) in addition to a few more economic reports and a couple of Treasury auctions.




Monday is the only day of the week without at least one thing scheduled. The most important items are set for midweek, meaning we should see the most movement in rates those days. 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... 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.