Rate Lock Advisory

Monday, September 8th

Monday’s bond market has opened in positive territory to start the week with an improvement in rates. Stocks are mixed with the Dow down 64 points and the Nasdaq up 121 points. The bond market is currently up 10/32 (4.04%), touching its’ lowest yield since early April of this year. This should allow for an improvement of approximately .125 of a discount point in this morning’s mortgage rates.

10/32


Bonds


30 yr - 4.04%

64


Dow


45,336

124


NASDAQ


21,825

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Medium


Unknown


Employment Situation

There is little driving trading this morning with no relevant economic data set for release today and no major headlines from the weekend. While there also is no relevant factual data scheduled tomorrow either, we will get the annual revision to the Bureau of Labor Statistics’ benchmark that could revise the payroll count significant lower over the 12 months ending in March of this year. This is an annual adjustment, but could signal the employment sector was weaker than previously thought. Some analysts feel that if the downward revision is strong enough, the Fed may opt to make a half-point rate cut at next week’s FOMC meeting instead of a quarter-point move.

High


Unknown


Inflation News

The rest of the week brings us only three monthly economic reports and two Treasury auctions that we will be watching. Two of the economic releases are labeled highly important since they will help us gauge inflationary metrics in the economy. These readings also could affect the Fed’s vote next week, so we can expect to see a good amount of volatility after they are posted.

High


Unknown


Consumer Price Index (CPI)

Overall, Thursday is the most important day of the week for rates due to the importance the Consumer Price Index (CPI) carries in the markets, but surprises in Wednesday’s Producer Price Index (PPI) could create a big move in the markets also. Today will likely end up being the calmest day for rates. The middle days should bring the biggest moves in rates this week. Keep an eye on the markets if still floating an interest rate and closing in the near future since they can get active without warning.

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.