Rate Lock Advisory

Monday, August 20th

Monday’s bond market has opened in positive territory to start the new week with a minor improvement to mortgage rates. The major stock indexes are mixed with the Dow up 94 points and the Nasdaq down 15 points. The bond market is currently up 7/32 (2.84%), which should cause this morning’s mortgage rates to be slightly lower than Friday’s morning pricing.

7/32

Bonds

30 yr - 2.84%

Dow

25,764

NASDAQ

7,800

Mortgage Rate Trend

Trailing 90 Days - National Average

30 Year Fixed
15 Year Fixed
5/1 ARM

Indexes Affecting Rate Lock

Medium

Unknown

None

There is nothing of relevance to mortgage rates set for today or tomorrow. The rest of the week brings us the release of only three pieces of economic data that may influence rates in addition to the minutes from the last FOMC meeting and the annual Jackson Hole Fed conference. 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.

---

Unknown

None

Overall, I am expecting to see the most movement in rates Friday with the Durable Goods Orders report scheduled and a speaking engagement from Fed Chair Powell at the Jackson Hole Central Banker conference. 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... 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.