Rate Lock Advisory

Tuesday, July 22th

Tuesday’s bond market has opened in positive territory again despite the lack of relevant economic headlines. Stocks are also posting early gains with the Dow up 15 points and the Nasdaq up 131 points. The bond market is currently up 9/32 (4.34%), but weakness late yesterday should keep this morning’s mortgage rates close to Monday’s early pricing. If you saw an intraday increase yesterday afternoon, you should see an improvement this morning of about the same size.

9/32


Bonds


30 yr - 4.34%

15


Dow


44,338

131


NASDAQ


20,842

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Low


Neutral


Fed Talk

There is nothing of importance scheduled for release today in what is generally a light calendar this week for mortgage rates. As expected, no relevant headlines came from Fed Chairman Powell’s opening statement this morning at a banking conference in Washington D.C. The Fed will be quiet regarding monetary policy and the economy until next week’s FOMC meeting adjourns. There is no clear reason for this morning’s bond gains.

Medium


Unknown


Existing Home Sales from National Assoc of Realtors

Tomorrow has two items scheduled that we will be watching. The National Association of Realtors will post their Existing Home Sales report for June at 10:00 AM ET, giving us an indication of housing sector strength. They are expected to say home resales declined last month, hinting at further weakness in the sector. Weakness in the housing sector makes broader economic growth more difficult, meaning good news for rates would be a larger than expected drop in sales.

Medium


Unknown


Treasury Auctions (5,7,10,20,30 year)

The second event of the day will be the 20-year Treasury Bond auction results announcement at 1:00 PM ET. A strong demand for the securities could help improve bonds and lead to slightly lower mortgage rates tomorrow afternoon. On the other hand, if investor interest in the sale was lackluster, we could see bonds weaken and mortgage rates move higher during early afternoon trading.

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.