Rate Lock Advisory

Friday, May 22th

Friday’s bond market has opened in positive territory with stocks reacting to concerns about the U.S. – China relationship. The major stock indexes are looking to close out the week on a negative note, pushing the Dow down 150 points and the Nasdaq down 13 points. The bond market is currently up 8/32 (0.65%), but a little weakness in mortgage bonds late yesterday should keep this morning’s mortgage rates very close to Thursday’s early pricing.



30 yr - 0.65%







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 relevance scheduled for release today. If we see a noticeable move in bond yields or an intraday revision to mortgage rates it will likely be a result of a move in stocks. Generally speaking, stock strength hurts bond prices, pushing yields and mortgage rates higher. On the other hand, if the major stock indexes extend this morning’s losses, we could see a slight improvement in rates before today’s early close in bonds.



Holiday Schedule

The bond market will close at 2:00 PM today while stocks are set to trade a full session. All the U.S. markets will be closed Monday for the Memorial Day holiday and will reopen for regular trading Tuesday morning. It is common to see a little pressure in bonds and mortgage related securities ahead of a long holiday weekend such as this one. That is usually caused by traders selling some holdings ahead of the holiday to protect themselves from events over the extended break.




Next week has a fairly large number of economic reports and other events scheduled that may influence mortgage rates. Some of the data is of less importance than others but there is at least one item scheduled each day, including Tuesday when the markets reopen. Look for details on the week’s calendar in Sunday evening’s weekly preview.

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.