Rate Lock Advisory

Monday, July 6th

Monday’s bond market has opened in negative territory with stocks showing strong gains during early trading. The Dow is currently up 323 points while the Nasdaq has gained 175 points. The bond market is currently down 9/32 (.70%), but strength late Thursday should allow this morning’s mortgage rates to be slightly lower than Thursday’s early pricing. The financial and mortgage markets were closed Friday for the Independence Day holiday.



30 yr - 0.70%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Stock Influences

There is nothing of importance scheduled for release today. Generally speaking, what drives stocks higher usually causes bonds to weaken and vice versa. In other words, stocks gains often lead to mortgage rates remaining flat or moving a little higher.




The rest of the week is also light in terms of economic data and other events that are relevant to mortgage rates. We have just one monthly and one weekly report that is worth watching, along with a couple of Treasury auctions. They don’t start until midweek, leaving today and tomorrow to be driven mostly by stocks.




Overall, no day stands out as critical for rates this week. Friday is the best candidate for most active day due to the release of the PPI, but it carries the same significance right now as the weekly unemployment update Thursday. The calmest day may end up being tomorrow unless something unexpected happens. While there is little scheduled this week that is expected to influence rates, it still would be prudent to watch the markets if still floating an interest rate as the markets can get active without notice.

Float / Lock Recommendation

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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.