Rate Lock Advisory

Monday, August 13th

Monday’s bond market has opened down slightly with stocks showing gains and overseas financial concerns easing temporarily. The major stock indexes are showing moderate gains with the Dow and Nasdaq both up 45 points. The bond market is currently down 2/32 (2.88%), which should keep this morning’s mortgage rates at Friday’s morning levels. Some lenders improved pricing late Friday as bonds improved, so if yours did you should see a slight increase in this morning’s rates.



30 yr - 2.88%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock




There is nothing of importance scheduled today that is likely to affect mortgage rates. The rest of the week brings us the release of six pieces of monthly and quarterly economic reports with one being considered highly important. With little to drive trading besides overseas financial news currently, look for the stock markets for mortgage rate direction until we get to the start of this week's activities mid-week.



Retail Sales

The calendar starts Wednesday with three pieces of data scheduled. We will get July's Retail Sales data and 2nd Quarter Employee Productivity and Costs at 8:30 AM ET. They will be followed by July's Industrial Production report at 9:15 AM ET. The sales data is highly important while the other two are moderately important. We are also following the turmoil in Turkey’s currency and banking system that has global markets on edge.




Overall, Wednesday is likely to be the most active day for mortgage rates due to the Retail Sales data being posted. Tomorrow is the best candidate for least important day, with exception to Turkey news affecting the markets again. We could see some movement in rates any day this week though, so please proceed cautiously if still floating an interest rate as this bond rally could reverse course without notice.

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.