Rate Lock Advisory

Friday, September 22th

Friday’s bond market has opened in positive territory with little to drive trading this morning. Stocks are showing minor gains of 24 points in the Dow and 65 points in the Nasdaq. The bond market is currently up 10/32 (4.45), which should improve this morning’s mortgage rates by approximately .250 of a discount point

10/32

Bonds

30 yr - 4.45%

24

Dow

34,094

65

NASDAQ

13,289

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Medium

Positive

General Bond Trends

There is no relevant economic data set for release today. It is good to see some recovery of the post-FOMC losses in bonds as the knee-jerk reaction seemed to be overkill. With no major headlines this morning to extend the selling, there is a decent chance of the week closing on a positive note.

High

Unknown

None

Next week brings us a handful of economic reports that are expected to influence mortgage rates, in addition to a couple of Treasury auctions. The week starts light with nothing scheduled for Monday. As the week progresses, the importance of the reports rises, ending with the Fed’s preferred inflation reading Friday morning. Further related to the Fed is a public speaking engagement by Chairman Powell late Thursday afternoon.

High

Unknown

Domestic Political Issues

Also worth noting is that the House of Representatives will be back next week to tackle the pending government shutdown that will happen on the 30th without a temporary spending bill in place. The outlook at the moment is not good, meaning there is a high probability of a shutdown next Saturday night. In general, this would likely be a favorable event for bonds and mortgage pricing, hopefully giving us some much-needed relief from the recent spike in yields and rates. We are not expecting any major headlines on this topic over the weekend. Look for details on all of next week’s activities in Sunday evening’s weekly preview.

Float / Lock Recommendation

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float 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.

Lopez Financial Inc

NMLS #: 333506

315 E San Bernardino Rd
Covina, CA 91723-1627
Equal Housing Lender
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