Rate Lock Advisory

Thursday, June 22th

Thursday’s bond market has opened in positive territory with today’s somewhat important economic data showing no major surprises. Stocks are mixed but fairly calm, pushing the Dow higher by 8 points and the Nasdaq lower by 7 points. The bond market is currently up 6/32 (2.14%), which should improve this morning’s mortgage rates slightly.

6/32


Bonds


30 yr - 2.14%

8


Dow


21,418

7


NASDAQ


6,226

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Low


Neutral


Weekly Unemployment Claims (every Thursday)

Last week’s unemployment figures were posted at 8:30 AM ET this morning, revealing 241,000 new claims for unemployment benefits were filed last week. This was a small increase from the previous week’s revised total of 238,000, but nearly matched the 240,000 that was expected. Since this is only a weekly snapshot, it usually takes a wide variance from forecasts for the data to affect mortgage rates and this was not enough of a miss to have an impact on today’s pricing.

Medium


Neutral


Leading Economic Indicators (LEI) from the Conference Board

Today’s second release was May's Leading Economic Indicators (LEI) at 10:00 AM ET. The Conference Board announced a 0.3% increase, pegging forecasts. The increase means the indicators are predicting growth in the economy over the next several months. Technically, that is unfavorable news. However, since it matched expectations and is not considered to be a highly important report, it has had a minimal influence on this morning’s mortgage rates.

Low


Unknown


New Home Sales

Tomorrow’s sole report will be May's New Home Sales report at 10:00 AM ET. This Commerce Department report helps us measure housing sector strength by tracking sales of newly constructed homes. This report is similar to Wednesday's Existing Home Sales report, but covers a much smaller portion of sales than that report does. It is expected to show a rise in sales, but will likely not have much of an impact on mortgage rates because this data gives such a small snapshot of the housing sector. I believe it will take a significant rise in sales or a sizable decline for this data to influence tomorrow’s mortgage rates.

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.