Rate Lock Advisory

Tuesday, December 6th

Tuesday’s bond market has opened up slightly with stocks in selling mode and little else to drive trading. The Dow is currently down 140 points while the Nasdaq has lost 158 points. The bond market is currently up 2/32 (3.57%), but weakness yesterday and selling in mortgage bonds during early trading is going to cause an increase of approximately .250 - .375 of a discount point in this morning’s pricing. Many lenders revised rates higher before closing yesterday, meaning if you saw an intraday revision Monday, you should see a smaller increase this morning.



30 yr - 3.57%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



General Bond Trends

We don’t have anything scheduled for today that is expected to affect mortgage rates. Expect to see the negative tone to continue in bonds, for the most part, until next week’s FOMC meeting. Don’t be surprised to see another intraday revision to rates before closing today, with odds it being an upward move.



Productivity and Costs (Quarterly)

Tomorrow has revised 3rd Quarter Productivity numbers set for release at 8:30 AM ET. Higher levels of productivity are thought to allow the economy to expand without inflationary pressures rising. This is good news for the bond market because economic growth itself isn't necessarily bad for bonds. It is the conditions surrounding an expanding economy, such as rising inflation, that hurt bond prices and mortgage rates. Current forecasts are calling for a 0.3% rise in productivity, matching the initial estimate. The stronger the reading, the better the news for the bond market. This report generally does not have a noticeable impact on mortgage pricing though, so it will take a wide variance to draw much attention.

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... Lock 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.