Rate Lock Advisory

Tuesday, January 21th

Tuesday’s bond market has opened in positive territory following the long weekend. Stocks are starting the shortened week with losses of 95 points in the Dow and 20 points in the Nasdaq. The bond market is currently up 14/32 (1.77%), which should improve this morning’s mortgage rates by slightly more than .125 of a discount point if comparing to Friday’s early pricing. The financial and mortgage markets were closed yesterday for the Martin Luther King Jr holiday.



30 yr - 1.77%







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 relevance taking place today that is expected to affect mortgage rates. The rest of the week has only two economic reports to watch, both of which are considered to be moderately important and not likely to cause noticeable movement in the markets or mortgage pricing.



Existing Home Sales from National Assoc of Realtors

December's Existing Home Sales from the National Association of Realtors is the first release, scheduled for 10:00 AM ET tomorrow morning. This data will give us a measurement of housing sector strength and mortgage demand by tracking home resales in the U.S. It is expected to show an increase in sales from November's level, meaning the housing sector strengthened last month. Ideally, bond traders would like to see a large decline in sales that would point toward sector weakness because weaker housing makes broader economic growth more difficult. However, as long we don't see a significant surprise in its results, it shouldn't have a big impact on mortgage rates.



Corporate Earnings

Also worth noting is the fact that we are in corporate earnings season. As big-named companies report their results, stocks should react accordingly. Strong earnings will likely boost stocks and hurt bond prices, pushing mortgage rates higher. Generally speaking, news that is good for stocks is bad for bonds and mortgage rates. However, disappointing results could lead to lower mortgage rates. With little economic data or other events scheduled this week to driving trading, stocks may end up being the biggest influence on 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... 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.