Rate Lock Advisory

Friday, November 24th

Friday’s bond market has opened has opened in negative territory following overnight weakness. Stocks are showing moderate gains with the Dow up 42 points and the Nasdaq up 9 points. The bond market is currently down 6/32 (2.34%), but strength late Friday should improve this morning’s mortgage pricing slightly if comparing to Wednesday’s afternoon rates.

6/32


Bonds


30 yr - 2.34%

42


Dow


23,568

9


NASDAQ


6,877

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Medium


Positive


Federal Open Market Committee (FOMC) Minutes

Wednesday’s afternoon release of the minutes from the most recent FOMC meeting gave us some bond-favorable information. They showed that Fed members are growing more concerned about inflation running well below their preferred level. There was also some talk of the fact the Fed may have raised key rates prematurely because inflation has not strengthened enough. What was in the minutes doesn’t derail a December rate hike though. Still, they gave us favorable results and the bond market strengthened after their 2:00 PM ET release, causing some lenders to improve rates before closing.

Low


Neutral


Holiday Schedule

There is nothing of relevance being posted today. In fact, it should be a pretty calm day for mortgage rates because many bond traders are home for the holiday weekend. The stock markets will close at 1:00 PM ET today while the bond market will close at 2:00 PM as part of the Thanksgiving holiday. All the markets will reopen for regular trading Monday morning.

High


Unknown


None

Next week is packed with economic data and other events that may affect mortgage rates, including a couple of Treasury auctions and a congressional appearance by Fed Chair Janet Yellen. Monday has a housing report scheduled but it is not considered to be highly important. 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... 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.