Weekly Rate Lock Advisory



Monday’s bond market has opened up slightly due to early stock weakness. The stock markets are starting the week in negative ground. The Dow is currently down 39 points while the Nasdaq is down 27 points. The bond market is currently up 4/32, which will likely improve this morning’s mortgage rates by approximately .125 of a discount point form Friday’s morning pricing.

There is nothing of relevance scheduled for release today, so look for any changes to mortgage rates to be a result of significant movement in stocks. As long as the major stock indexes remain close to current levels, mortgage rates should follow suit this afternoon.

The rest of the week brings us the release of only two relevant monthly economic reports but neither of them is considered to be highly important. There are two important Treasury auctions this week that may influence mortgage rates more than the minor economic data that is scheduled. It is also a holiday-shortened week with the bond market closed Friday in observance of the Veterans Day holiday. The stock markets will be open Friday, but bonds will not be traded meaning that many lenders will be closed.

The two important Treasury auctions come Wednesday and Thursday when 10-year Notes and 30-year Bonds are sold. The economic data that is being posted will be released Thursday and Friday mornings. It is difficult to predict just how active this week will be for mortgage rates, but I suspect it will be fairly quiet a good part of the week. I don't believe the economic data on tap will be a catalyst. I think the key will be the stock markets and Wednesday's Treasury auction. If they give us favorable results, mortgage rates will likely close the week lower than today’s opening levels.

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.