Rate Lock Advisory

Friday, August 28th

Friday’s bond market has opened in positive territory with stocks in negative ground and today’s economic data showing favorable results. The Dow is currently down 57 points while the Nasdaq has lost 9 points. The bond market is currently up 13/32 (2.14%), which should improve this morning’s mortgage pricing by approximately .125 of a discount point.



30 yr - 2.14%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



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

Yesterday’s 7-year Treasury Note auction was received better than Wednesday’s 5-year Note sale. The benchmarks used to gauge investor demand indicated a stronger level of interest in the securities. That helped boost bond prices during afternoon trading but it was not enough of a move to cause most lenders to revise rates lower intraday.



Personal Income and Outlays

July's Personal Income and Outlays report was posted at 8:30 AM ET this morning, revealing a 0.4% rise in income and a 0.3% increase in spending. The income reading matched forecasts, but the spending was slightly softer than forecasts were calling for. Since consumer spending makes up over two-thirds of the U.S. economy, the weaker than expected reading makes the data slightly favorable for mortgage rates. However, this is not the cause of this morning’s bond gains.



University of Michigan Consumer Sentiment (Rev)

The second report of the morning was the University of Michigan's revised Index of Consumer Sentiment for August. It came in at 91.9, falling short of the 93.0 that was forecasted and the preliminary reading of 92.9. This means surveyed consumers didn’t feel as good about their personal financial and employment situations than many had thought. Therefore, we can consider this data favorable for bonds and mortgage rates.




Next week is moderately busy in terms of the number of relevant economic reports scheduled for release, but a couple of the releases are considered highly important to the financial and mortgage markets. The most important reports are the ISM index and monthly Employment report. Look for details on next week’s calendar 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... 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.