Rate Lock Advisory

Tuesday, July 23th

Tuesday’s bond market has opened in positive territory following favorable housing news. Stocks are showing early gains also with the Dow up 60 points and the Nasdaq up 69 points. The bond market is currently up 7/32 (4.22%), but weakness late Monday is going to keep this morning’s mortgage rates close to yesterday’s early levels. If you saw an intraday increase yesterday, you should see an improvement this morning.



30 yr - 4.22%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Existing Home Sales from National Assoc of Realtors

Today’s only relevant data was June’s Existing Home Sales report at 10:00 AM ET. The National Association of Realtors said home resales dropped 5.4% last month, signaling more weakness in the housing sector. Analysts were expecting to see a smaller decline, making the data good news for bonds and mortgage rates.



New Home Sales

Tomorrow has a minor housing report scheduled for 10:00 AM ET and an afternoon event that may cause a slight revision in rates later in the day. June’s New Home Sales report will give us further information on the housing sector, but a very small part of it compared to today’s release. It tracks sales of newly constructed homes instead of resales. Forecasts are predicting an increase in sales.



Treasury Auctions (5,7,10,20,30 year)

The afternoon event is the 5-year Treasury Note auction results at 1:00 PM ET. If the sale draws a lackluster interest from investors, we could see broader selling in bonds that leads to upward revisions to mortgage rates before the end of the day. On the other hand, strong investor demand usually makes bonds more attractive to investors, bringing more funds into the market.



Gross Domestic Product (GDP)

Thursday begins the release of this week’s highly important data. We will get the initial Gross Domestic Product (GDP) reading for the 2nd quarter and a manufacturing report (Durable Goods Orders) Thursday, followed by June’s Personal Income and Outlays report Friday morning that includes the Fed’s preferred inflation readings. Any surprises in those releases should cause much larger moves in the markets and mortgage pricing than we have seen so far this week.

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.

159 Hampton Point Drive Suite 4
St. Augustine, FL 32092