Rate Lock Advisory

Wednesday, April 24th

Wednesday’s bond market has opened in positive territory, extending overnight gains that were generated from weaker economic data overseas. Stocks are showing modest losses during early trading with the Dow down 29 points and the Nasdaq down 2 points. The bond market is currently up 13/32 (2.52%), which should improve this morning’s mortgage rates by approximately .125 - .250 of a discount point.



30 yr - 2.52%







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)

There is nothing of relevance set for release this morning. However, we do have an afternoon event to watch in the 5-year Treasury Note auction. These types of sales don’t directly impact mortgage pricing, but they can influence general bond market sentiment. If the sales go poorly, we could see broader selling in the bond market that leads to upward revisions in mortgage rates. On the other hand, strong sales usually make government securities more attractive to investors and bring more funds into bonds. The buying of bonds that follows often translates into lower mortgage rates. Results of the sales are usually posted at 1:00 PM ET each auction day, so look for any reaction to come during early afternoon hours.



Durable Goods Orders

Besides the 7-year Note auction and weekly unemployment figures, we will also get an important economic release tomorrow morning. March's Durable Goods Orders will be released by the Commerce Department at 8:30 AM ET tomorrow. This report gives us an indication of manufacturing sector strength by tracking orders for big-ticket items at U.S. factories. These are products that are expected to last three or more years, such as appliances, electronics and airplanes. Current forecasts are calling for an increase in new orders of 0.9%. This would be a sign of manufacturing sector strength, but this data can be quite volatile from month-to-month. Therefore, a small variance between forecasts and the actual results will not heavily influence the markets or mortgage rates. A large decline would be considered good news for mortgage pricing, while a much larger rise would indicate strength in the sector. A sign of solid manufacturing growth could lead to higher mortgage rates tomorrow.

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.