Rate Lock Advisory

Monday, December 17th

Monday’s bond market has opened in positive territory as stocks start the week in negative ground. The Dow is currently is down 147 points while the Nasdaq is down 30 points. The bond market is currently up 8/32 (2.86%), which should keep this morning’s mortgage rates close to Friday’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




There is nothing on tap today that is expected to affect mortgage rates. The rest of week has plenty though with seven economic reports for the markets to digest in addition to another FOMC meeting. There are no key pieces of economic data scheduled this week, but some of the reports do carry enough importance to cause movement in mortgage rates and the afternoon of FOMC events can easily be a market mover.



Housing Starts (New Residential Construction)

November's Housing Starts will start the week's calendar at 8:30 AM ET tomorrow morning. This data isn't known to be highly influential to bonds or mortgage pricing, but it does give us an indication of housing sector strength by tracking new home groundbreakings. Analysts are expecting to see little change in new home starts, indicating the new home portion of the housing sector was flat. Slowing starts would be favorable for the bond market, although a wide variance is likely needed for the data to cause noticeable movement in the markets or mortgage rates.




Overall, the calmest day for rates will likely be today. Wednesday is the best candidate for most active day of the week, but Friday could also bring a noticeable move in rates if the day’s four releases are mostly favorable or unfavorable. Also worth noting about Friday is the midnight deadline for a spending bill to be passed in Washington DC to avoid a partial government shutdown. The impact of this shutdown would not be nearly as significant as previous ones because many governmental agencies are funded through September of next year and won’t be affected this time. Still, it is an issue that could come into play as the deadline nears. With so much going on this week, it would be prudent to maintain contact with your mortgage professional if still floating an interest rate.

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.