Rate Lock Advisory

Monday, February 6th

Monday’s bond market has opened well in negative territory to start the week with another increase in rates. Stocks are showing losses of 177 points in the Dow and 80 points in the Nasdaq. The bond market is currently down 26/32 (3.61%), which should cause this morning’s mortgage rates to be higher than Friday’s early pricing by approximately .750 - .875 of a discount point. Some of that would be reflected in Friday afternoon upward revisions, meaning the size of increase you see this morning depends on how much of an intraday revision you saw before closing Friday.

26/32


Bonds


30 yr - 3.61%

177


Dow


33,748

80


NASDAQ


11,926

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

High


Negative


Employment Situation

There is no relevant economic data being released today. Today’s sell-off is a result of stronger than expected economic data from overseas and an extension of Friday’s post-Employment report weakness. The blowout Employment report surprised everyone and shows the sector was much stronger than anticipated, undermining the theory the economy is headed for a recession. It also allows the Fed to continue to be aggressive with raising key short-term interest rates. The negative impact those hikes are expected to have on the economy is the reason stocks reacted negatively also.

Medium


Unknown


None

The rest of the week brings us the release of only one monthly economic report for the markets to digest in addition to a couple of Treasury auctions midweek. Tomorrow has nothing scheduled that we need to be concerned with.

Medium


Unknown


None

Overall, no day stands out as the most important of the week for rates with so little scheduled to influence them. There is a decent possibility that today will be that day. The calmest day may be tomorrow unless something unexpected happens. The markets can get active without notice, so it would be prudent to still keep an eye on them if floating an interest rate and closing in the near future.

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.


Pacific Coast Financial, LLC

MLO#130505 Lic# MB 78982

2150 N. 107th Street Suite 170
Seattle, WA 98133