Rate Lock Advisory

Monday, October 24th

Monday’s bond market has opened in negative territory with stocks starting the week with solid gains. The Dow is currently up 87 points while the Nasdaq has gained 44 points. The bond market is currently down 7/32 (1.76%), but I don’t believe we will see much of a change in this morning’s mortgage rates if comparing to Friday’s morning pricing.



30 yr - 1.76%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock




There is nothing of importance scheduled for release today. However, the rest of the week brings us the release of six economic reports that may influence mortgage rates in addition to two Treasury auctions that have the potential to do so also. The most important data comes later in the week though.



Consumer Confidence Index (Conference Board)

October's Consumer Confidence Index (CCI) will kick off the week’s calendar at 10:00 AM ET tomorrow morning. This Conference Board index gives us a measurement of consumer willingness to spend. It is expected to show a drop in confidence from last month's 104.1 reading. That would mean that consumers did not feel as good about their own financial and employment situations as they did last month, indicating they are less likely to make large purchases in the near future. That would be good news for the bond market because consumer spending makes up over two-thirds of our economy. Current forecasts are showing a reading of 100.8. The lower the reading, the better the news it is for mortgage rates.




Overall, look for Friday to be the most active day for mortgage rates with three reports scheduled including the initial GDP reading, although stock earnings news could still affect the broader markets and possibly mortgage rates any day. I suspect this will be a fairly active week for mortgage rates but the likelihood of seeing a significant move in rates seems to be somewhat limited to Friday unless something unexpected happens. However, it still would be prudent to maintain contact with your mortgage professional if still floating an interest rate.

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.