Rate Lock Advisory

Wednesday, June 21th

Wednesday’s bond market has opened in negative territory as today’s only economic data gave us unfavorable results. The major stock indexes are mixed with the Dow down 11 points and the Nasdaq up 23 points. The bond market is currently down 4/32 (2.17%), which should keep this morning’s mortgage rates at yesterday’s morning levels. If your lender improved rates slightly yesterday afternoon, you likely will see a reversal in this morning’s pricing.



30 yr - 2.17%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Existing Home Sales from National Assoc of Realtors

The National Association of Realtors gave us May's Existing Home Sales report at 10:00 AM ET this morning. It showed a 1.1% rise in home resales last month when analysts were expecting to see a decline. This means that the housing sector was stronger than many had thought, making the data bad news for bonds and mortgage rates.



Weekly Unemployment Claims (every Thursday)

The first of tomorrow’s two relevant economic releases will be last week’s unemployment figures at 8:30 AM ET. They are expected to show that 240,000 new claims for unemployment benefits were filed last week, up from the previous week’s 237,000 initial claims. Since rising claims hints at employment sector weakness, the higher the number the better the news it is for mortgage rates. However, because this is only a weekly report, it likely will have little impact on tomorrow’s mortgage rates unless it shows a significant variance.



Leading Economic Indicators (LEI) from the Conference Board

May's Leading Economic Indicators (LEI) will also be posted tomorrow, but at 10:00 AM ET. The Conference Board, who is a New York-based business research group, produces this report. The LEI attempts to predict economic activity over the next three to six months. Good news for mortgage rates would be a decline in this index, but it is expected to show a 0.3% increase from April's reading. This means it is predicting a minor increase in economic growth over the next several months. Since this report is not considered to be of high importance, I don't see it causing too much movement in rates regardless if it shows a particularly strong or weak reading.

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.