Rate Lock Advisory

Tuesday, October 15th

Tuesday’s bond market has opened in positive territory to start the new shortened week with a small improvement in mortgage rates. Stocks are mixed with the Dow down 246 points and the Nasdaq up 10 points. The bond market is currently up 12/32 (4.05%), which should allow this morning’s mortgage rates to be lower than Friday’s early pricing by approximately .125 of a discount point. The bond market was closed yesterday in recognition of the Columbus / Indigenous Peoples’ Holiday.

12/32

Bonds

30 yr - 4.05%

246

Dow

42,818

10

NASDAQ

18,513

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Medium

Unknown

Fed Talk

There is nothing of importance scheduled for release today and tomorrow other than a handful of Fed-member speeches and a large number of corporate earnings announcements. We can expect rates to remain fairly calm until this week’s data is posted later in the week. There are three monthly economic reports scheduled that are expected to influence mortgage rates, but one of them is considered to be extremely important to the financial markets.

Low

Unknown

Corporate Earnings

Corporate earnings season gets into full swing this week, when publicly-traded companies release their quarterly and annual earnings reports. We have several big-named companies releasing their earnings that will draw plenty of attention. Strong earnings announcements are good news for stocks and bad news for bonds. Generally speaking, if earnings miss expectations, bonds should rally and mortgage rates should move slightly lower.

High

Unknown

Retail Sales

Overall, Thursday is likely to be the most active day for rates due to the importance of the Retail Sales report. Tomorrow is a good candidate for calmest day. While rates may still be active this week, we probably will not see the same amount of movement and intraday revisions as we saw last week.

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.

Parker Anderson Real Estate Services

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