Rate Lock Advisory

Tuesday, October 25th

Tuesday’s bond market has opened flat despite weaker than expected economic news. Stocks are calm also but mixed with the Dow up 17 points and the Nasdaq down 1 point. The bond market is currently up 1/32 (1.76%), but due to weakness late yesterday we should see a slight increase in this morning’s mortgage pricing if comparing to Monday’s early rates.



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



Consumer Confidence Index (Conference Board)

Today’s only economic data was October's Consumer Confidence Index (CCI) at 10:00 AM ET. The Conference Board announced a reading of 98.6 that fell short of the 100.8 that was forecasted. It was also a sizable decline from September’s revised reading of 103.5, indicating that surveyed consumers were much less optimistic about their own financial situations this month than they were last month. Because waning confidence usually translates into weaker levels of consumer spending, this is good news for bonds and mortgage rates.



New Home Sales

Tomorrow also has only one piece of economic data that we will be watching. That will be September's New Home Sales from the Commerce Department at 10:00 AM ET. This report covers the small percentage of home sales that last week's Existing Home Sales report didn't include. It is expected to show little change in sales of newly constructed homes, but I don't see this report having much of an impact on tomorrow's mortgage rates regardless what it shows.



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

The first of this week’s two relevant Treasury auctions will come tomorrow also. 5-year Treasury Notes will be sold tomorrow, followed by Thursday's 7-year Note sale. If these sales are met with a strong demand from investors, particularly tomorrow's auction, bond prices may rise during afternoon trading. This could lead to improvements to mortgage rates shortly after the results of the sales are posted at 1:00 PM ET each day. But a lackluster investor interest may create selling in the broader bond market and lead to slight upward revisions to mortgage rates.

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.