Rate Lock Advisory

Friday, April 12th

Friday’s bond market has opened in positive territory following overnight gains and weaker than expected economic news. Early stock selling may also be contributing to this morning’s strong open in bonds. The Dow is currently down 280 points while the Nasdaq has lost 160 points. The bond market is up 24/32 (4.45%), which should improve this morning’s mortgage rates by approximately .250 of a discount point compared to Thursday’s early pricing. Volatility throughout the day caused some lenders to issue both an intraday increase and then an improvement later in the day. The net difference in this morning’s rates should be lower than Thursday’s initial pricing.



30 yr - 4.45%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Univ of Mich Consumer Sentiment (Prelim)

Today’s sole economic data came from the University of Michigan, who posted their preliminary Index of Consumer Sentiment for April at 10:00 AM ET. They announced a reading of 77.9 that was a decline from March’s 79.4 and lower than expectations. The softer reading means surveyed consumers felt better about their own financial situations last month than currently. We consider that good news for bonds and mortgage rates because waning confidence usually translates into weaker consumer spending numbers, limiting economic growth.



Retail Sales

Next week brings us a handful of economic releases, another Treasury auction and the Fed Beige Book. One of those reports is considered highly important (March’s Retail Sales) and it starts the week’s activities early Monday morning. There are also plenty of Fed speaking engagements and corporate earnings releases scheduled. We likely won’t see nearly as much volatility in the bond market and mortgage rates as we did this week, but there should still be noticeable moves in rates. This is especially true early in the week. Look for details on all of next week’s calendar in Sunday evening’s weekly preview.

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.