Rate Lock Advisory

Tuesday, June 6th

Tuesday’s bond market has opened in negative territory, taking back some of yesterday’s afternoon gains. Stocks are showing modest losses of 40 points in the Dow and 27 points in the Nasdaq. The bond market is currently down 11/32 (3.72%), but that strength late in the day should allow this morning’s mortgage rates to be approximately .125 of a discount point lower than Monday’s early pricing. If you saw an intraday improvement yesterday, you should see an increase in this morning’s rates. Either way, we can expect a somewhat calm few days for rates, unless something unexpected happens. We have no monthly or quarterly economic data scheduled over the remaining days. Thursday’s weekly unemployment update may draw a little more attention than usual due to the lack of other influences, but will not be a market mover regardless of what it shows. In other words, the bond market is looking for something to trade on with little options at the moment.



30 yr - 3.72%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Geopolitical/Financial Issues

There is little driving trading this morning. Early bond losses may be a delayed reaction to this weekend’s oil news that is expected to drive oil prices higher, contributing to inflationary pressures in the economy. Or we could be seeing traders react to headlines from the World Bank, who announced they had revised their economic outlook higher for this year. Stronger economic growth makes long-term securities, such as mortgage bonds, less appealing to investors.

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.