Rate Lock Advisory

Tuesday, June 27th

Tuesday’s bond market has opened in negative territory, partly a result of stronger than expected economic data. Stocks are showing minor losses of their own with the Dow down 8 points and the Nasdaq down 23 points. The bond market is currently down15/32 (2.18%), which should push this morning’s mortgage rates higher by approximately .125 of a discount point.

15/32


Bonds


30 yr - 2.18%

8


Dow


21,400

23


NASDAQ


6,223

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Medium


Negative


Consumer Confidence Index (Conference Board)

Today’s only relevant economic data was June's Consumer Confidence Index (CCI) at 10:00 AM ET. The Conference Board announced a reading of 118.9 that exceeded forecasts of 116.7. It was also an increase from May’s revised 117.6, indicating surveyed consumers were more optimistic about their own financial situations than they were last month. Because higher levels of consumer confidence usually translate into stronger levels of consumer spending that fuels economic growth, today’s news was negative for bonds and mortgage rates.

Medium


Unknown


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

Today also has the first of this week’s two Treasury auctions that may affect mortgage rates. These sales may influence broader bond trading enough to change mortgage rates slightly if they show overly strong or weak investor demand. 5-year Notes are being sold today while 7-year Notes go tomorrow. If they are met with a strong demand, we could see bond prices rise later today. This could lead to afternoon improvements to mortgage rates also. On the other hand, if the sales draw a lackluster interest from investors, mortgage rates may move slightly higher during afternoon trading these days. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon hours.

Low


Neutral


None

There is no relevant economic data scheduled for release tomorrow. It likely will be a fairly calm day for mortgage rates unless something unexpected transpires. The 7-year Note auction can lead to a small change in rates, but has little chance of causing a significant move.

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.