Rate Lock Advisory

Friday, July 1st

Friday’s bond market initially opened well in positive territory but stronger than expected economic news late this morning helped to erase those early gains. The major stock indexes are showing moderate improvements with the Dow up 67 points and the Nasdaq up 31 points. The bond market is currently up 2/32 (1.46%), which should keep this morning’s mortgage rates slightly better than yesterday’s morning. Most of that improvement is a result of strength late yesterday and not this morning’s open. Therefore, if your lender improved pricing Thursday afternoon, you may not see a change this morning.



30 yr - 1.46%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



ISM Index (Institute for Supply Management)

Today’s only relevant data came at 10:00 AM ET when the Institute of Supply Management (ISM) released their manufacturing index for June. It came in at 53.2, exceeding expectations of 51.5. This indicates that more manufacturing executives felt business improved during the month than many had thought. Since that is a sign of manufacturing sector strength, the news is negative for bonds and mortgage rates. The reaction also means the markets are paying attention to economic reports again instead of Brexit-related issues.



Holiday Schedule

We have an early close in the bond market today ahead of Monday’s Independence Day holiday. Stocks should be open for a full day of trading while bonds will close at 2:00 PM ET. These long weekends sometimes lead to additional volatility right before they begin as investors adjust holdings to protect themselves from events over the holiday period. This has been a pretty active week in the financial and mortgage markets, so it should not be a surprise if we see some movement as the early closing nears. If we do see it, it should not be anything too drastic.




Next week doesn’t have a high number of reports scheduled for release, but they do include the FOMC minutes and the almighty monthly Employment report. There is a minor piece of data scheduled for release after the markets reopen Tuesday morning. Look for details on it and the rest of the week’s activities in Sunday evening’s weekly preview.




We would like to take this opportunity to wish all of our readers a happy and safe holiday!

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... Lock 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.