Rate Lock Advisory

Wednesday, February 21th

Wednesday’s bond market has opened fairly flat with little to drive trading this morning. Stocks are showing early losses of 122 points in the Dow and 87 points in the Nasdaq. The bond market is currently up 1/32 (4.27%), but gains late yesterday should allow this morning’s mortgage rates to be approximately .125 of a discount point lower than Tuesday’s morning pricing.



30 yr - 4.27%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Treasury Auctions (5,7,10,20,30 year)

Today’s only mortgage-related events are happening this afternoon. We have a 20-year Treasury Bond auction taking place with results set for announcement at 1:00 PM ET. A strong demand from investors may boost the broader bond market and could cause a slight improvement in rates during early afternoon trading. However, weak interest in the sale could lead to an upward move in rates later today.



FOMC Meeting Minutes

The minutes from last month's FOMC meeting will be posted at 2:00 PM ET. Traders will be looking for any indication of the Fed's next move regarding monetary policy, specifically their discussion about when they still start to lower key short-term interest rates. If there is a strong reaction to them, it should be during mid or late afternoon trading.



Weekly Unemployment Claims (every Thursday)

Tomorrow has two pieces of moderately important economic data scheduled. First will be last week’s unemployment figures at 8:30 AM ET. An increase in new claims for benefits is considered to be a sign of weakness in the employment sector and favorable news for the bond market. Forecasts show 216,000 new filings, up from the previous week’s 212,000. The larger the number, the better the news for mortgage rates.



Existing Home Sales from National Assoc of Realtors

January's Existing Home Sales report by the National Association of Realtors will close out this week's calendar at 10:00 AM ET tomorrow morning. Because this data tracks home resales throughout the country, it gives us a measure of housing sector strength. It is expected to show a rise in sales of existing homes, meaning the housing sector strengthened last month. Ideally, the bond market would like to see a sizable decline in sales. Since long-term securities such as mortgage bonds tend to thrive during weaker economic conditions, weak housing numbers would be good news for 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... 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