Rate Lock Advisory

Friday, July 19th

Friday’s bond market has opened in negative territory, giving back some of yesterday’s afternoon rally. Stocks may be contributing to the weakness as they react to strong earnings news. The Dow is currently up 80 points while the Nasdaq is up 20 points. The bond market is currently down 7/32 (2.04%) but gains late yesterday should keep this morning’s rates a bit lower than Thursday’s early pricing. Many lenders revised pricing lower before the end of the day yesterday. If you saw an intraday improvement yesterday, you will likely see a slight increase this morning.



30 yr - 2.04%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



University of Michigan Consumer Sentiment (Prelim)

This morning’s sole relevant economic report was the initial University of Michigan Index of Consumer Sentiment reading for July at 10:00 AM ET. It came in at 98.4, up from June’s final reading of 98.2 but a tad lower than expectations. The increase means more surveyed consumers felt better about their own financial situations than last month. That is technically bad news for bonds because it means those consumers are more likely to make a large purchase in the near future. However, since it was not as high as expected, we are not seeing much of a reaction to the news in this morning’s trading or mortgage pricing.




Next week brings us the release of a few economic reports for the markets to digest in addition to a couple of Treasury auctions that may influence mortgage rates. The most important data comes late in the week, including an extremely important GDP reading. The week starts off light with nothing set for release Monday, so we can expect weekend news and stock movement to drive bond trading. Look for details on the week’s full schedule 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.