Rate Lock Advisory

Thursday, October 30th

Thursday’s bond market has opened in negative territory, extending yesterday’s post-FOMC selling. Stocks are mixed with the Dow up 216 points and the Nasdaq down 198 points. The bond market is currently down 6/32 (4.09%), which with yesterday’s afternoon selling should cause this morning’s mortgage rates to be approximately .500 - .625 of a discount point higher than Wednesday’s early pricing. Most of the increase is a result of yesterday’s late losses, so if you saw an intraday upward revision you should see a smaller increase this morning.

6/32

Bonds

30 yr - 4.09%

216

Dow

47,848

109

NASDAQ

23,757

Mortgage Rate Trend

Trailing 90 Days - National Average

30 Year Fixed
15 Year Fixed
5/1 ARM

Indexes Affecting Rate Lock

Medium

Neutral

Geopolitical/Financial Issues

There is no relevant economic data set for release today. News that the U.S. and China have declared a trade war truce could be influencing the markets also. However, it appears that Fed Chairman Powell’s comments during his press conference yesterday that were taken to mean the Fed may not cut rates at December’s meeting is still driving bond trading this morning. Those words signaled that there may still be concerns about inflation moving higher if the Fed lowers rates too much, especially with a lack of important economic data to make their decision.

Low

Unknown

Fed Talk

The government shutdown is preventing more data from being released tomorrow. This leaves only a couple of Fed-member speeches on the day’s calendar. We will be seeing more and more of these speaking events now that the FOMC meeting and the Fed’s mandatory quiet period is now behind us. They will take on a bit more importance when there is little else in the news to drive 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... 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.