Rate Lock Advisory

Monday, August 21th

Monday’s bond market has opened in positive territory even though there is nothing to drive trading today. Stocks may be helping by showing relatively minor losses to start the week. The Dow is currently down 47 points while the Nasdaq has lost 10 points. The bond market is currently up 4/32 (2.18%), but weakness mid-day Friday should keep this morning’s mortgage rates at Friday’s morning levels. If your lender revised pricing higher intraday Friday, you should see a slight improvement in this morning’s rates.



30 yr - 2.18%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock




Today has nothing scheduled that is relevant to the bond market or mortgage rates. The rest of the week brings us the release of only three pieces of economic data that may influence mortgage rates in addition to the annual Jackson Hole Fed conference. There is nothing of importance set for tomorrow either, but there is at least one event or report scheduled every other day of the week. Only one of the reports can be considered very important. As a result, it is likely that we will see the most movement in rates later in the week.



Misc Fed

Also worth noting is the annual central banker conference in Jackson Hole, Wyoming. There have been major events to come out of this event in the past while others have been non-factors. Federal Reserve Chair Janet Yellen is scheduled to speak this year, so all eyes will be on her speech at 10:00 AM Friday. The conference runs Thursday through Saturday, so we could still see the markets react to something from this event. Any impact on trading or mortgage rates will happen Thursday or Friday.




Overall, I am expecting to see the most movement in rates Friday with the week’s most important release and a speaking engagement from Fed Chair Janet Yellen both scheduled. We need to watch the stock markets for rate direction also as significant selling in them could help bring funds into bonds. Generally speaking, stock strength often hurts the bond market while stock losses make bonds more appealing to investors. Therefore, please proceed cautiously and keep an eye on the markets 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.