Rate Lock Advisory

Thursday, July 19th

Thursday’s bond market has opened in positive territory despite unfavorable results from this morning’s minor economic data. Early stock selling has the Dow lower by 88 points and the Nasdaq down 24 points. The bond market is currently up 4/32 (2.86%), but weakness late yesterday should keep this morning’s mortgage rates at Wednesday’s early levels.



30 yr - 2.86%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Fed Beige Book

The Fed’s Beige Book report that was released yesterday afternoon showed modest or moderate economic growth in 10 of the Fed’s 12 districts but not major surprises. There were some concerns about the impact that trade tariffs are having on business conditions, although not all comments were negative for the economy. Some feedback indicated an increase in new orders, intended by their clients to get ahead before the tariffs took effect. Overall, nothing of significance was noted that we should be concerned or happy about. Accordingly, we saw almost no reaction in the bond market and mortgage rates after the report was posted.



Weekly Unemployment Claims (every Thursday)

We got two minor pieces of economic data this morning, starting with last week’s unemployment numbers at 8:30 AM ET. They showed that 207,000 new claims for unemployment benefits were filed last week. This was a decline from the previous week’s revised 215,000 and lower than the 220,000 that analysts were expecting to see. It was also the fewest number of claims made since December 1969. The decline indicates a strengthening employment sector, making the data bad news for bonds and mortgage rates. However, it is worth noting that this is only a weekly snapshot, so we have seen little reaction to the news.



Leading Economic Indicators (LEI) from the Conference Board

June's Leading Economic Indicators (LEI) were posted at 10:00 AM ET, revealing a 0.5% rise. This means they are predicting economic growth over the next 3-6 months, making the data slightly negative for bonds and mortgage rates. Analysts were expecting to see a 0.4% increase, so the variance is inconsequential and a non-factor in this morning’s mortgage pricing.




Tomorrow has no relevant economic data scheduled for release. If we see a noticeable move in mortgage rates, it likely will be a result of sizable stock gains or losses. If the major stock indexes are calm tomorrow morning, mortgage rates should follow suit.

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.