Rate Lock Advisory

Wednesday, September 19th

Wednesday’s bond market has opened in negative territory, extending the recent sell-off another day. Stocks are mixed with the Dow up 136 points and the Nasdaq down 27 points. The bond market is currently down 5/32 (3.07%), which with intraday weakness late yesterday should push this morning’s mortgage rates higher by approximately .250 of a discount point. If your lender revised pricing higher intraday Tuesday, you should see less of an increase this morning.



30 yr - 3.07%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Housing Starts (New Residential Construction)

August's Housing Starts was posted at 8:30 AM ET this morning. The Commerce Department announced a 9.2% increase in new home groundbreakings, exceeding forecasts. The favorable news came in the number of new building permits issued that was well below expectations. The permits reading helps us gauge future groundbreakings since a permit must be issued before construction starts. The mixed results did nothing to deter the negative tone in the bond market, leaving us with a bad start to the day for mortgage shoppers.



Weekly Unemployment Claims (every Thursday)

Tomorrow has two pieces of economic data set for release. The first will be last week’s unemployment figures at 8:30 AM ET. They are expected to show that 209,000 new claims for unemployment benefits were filed last week, up from 204,000 the previous week. Rising claims is a sign of employment sector weakness, so the higher the number of new claims, the better the news it is for mortgage rates. Although, because this is only a weekly update, it will take a wide variance from forecasts for the data to directly influence mortgage rates.



Existing Home Sales from National Assoc of Realtors

Next up is August's Existing Home Sales from the National Association of Realtors at 10:00 AM ET tomorrow. This report will give us another indication of housing sector strength by tracking home resales in the U.S. It is expected to show a slight increase from July's sales. Good news would be a sizable decline in sales because a weakening housing sector makes broader economic growth more difficult.

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.