Rate Lock Advisory

Friday, July 10th

Friday’s bond market has opened in positive territory, extending yesterday’s rally. Stocks are showing early losses of 29 points in the Dow and 86 points in the Nasdaq. The bond market is currently up 6/32 (0.59%), which should improve this morning’s mortgage rates by another .250 - .375 of a discount point if comparing to Thursday’s early pricing. If you saw an afternoon improvement in rates late yesterday, you should see less of a gain this morning.



30 yr - 0.59%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Treasury Auctions (5,7,10,20,30 year securities)

Yesterday’s 30-year Treasury Bond auction followed suit of Wednesday’s sale with a strong demand from investors. Mortgage and Treasury bond prices had already improved from early morning levels by the time results were posted at 1:00 PM ET. But once they were released, we saw another move higher. That eventually led to many lenders revising rates lower before the end of the day.



Producer Price Index (PPI)

Today’s sole relevant economic report was May's Producer Price Index (PPI) at 8:30 AM ET that revealed a 0.2% decline in the overall reading and a 0.3% decline in the core data. Both readings were well below expectations, indicating inflationary pressures at the producer level of the economy (manufacturing) were much softer than expected. Since bonds tend to thrive when inflation is weak, we can consider this data good news for mortgage rates.




Next week brings us many more economic releases than we got this week, including one that is considered highly relevant and another that is extremely important. The events that will be most watched come during the middle days of the week. Monday has nothing scheduled that we need to be concerned with, leaving weekend news and stocks to drive trading as the new week begins. Look for details on all of next week’s activities 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.