Rate Lock Advisory

Friday, March 24th

Friday’s bond market has opened fairly flat as the markets await news from Washington on the healthcare vote. Stocks are showing gains with the Dow up 44 points and the Nasdaq up 34 points. The bond market is currently up 1/32 (2.41%), but due to weakness yesterday we should see an increase of approximately .125 of a discount point in today’s mortgage rates. If your lender made an intraday upward revision yesterday, you likely will see little change this morning.

1/32


Bonds


30 yr - 2.41%

44


Dow


20,700

34


NASDAQ


5,852

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

High


Neutral


Durable Goods Orders

February's Durable Goods Orders report was posted at 8:30 AM ET. The Commerce Department announced a 1.7% increase in new orders for big-ticket products such as airplanes and appliances. This was a little stronger than the 1.3% rise that was expected, but because this data is known to be quite volatile from month to month, the variance didn’t raise any concern. In fact, a secondary reading that excludes more costly and volatile airplane orders came in lighter than forecasted. While this is normally considered a pretty important report, it has not had much of an impact on today’s trading or mortgage pricing.

High


Unknown


Geopolitical/Financial Issues

The healthcare bill that was expected to be voted on in the House of Representatives yesterday was delayed and it appears that it is going to happen today. Keep in mind that passage does not mean it is law or taking effect. What we can expect though is a knee-jerk reaction once the vote is finalized. If it passes the House, I believe we will see negative reaction in bonds and quite possibly, upward revisions to rates. On the other hand, failure to vote or even another no vote would signal President Trump’s pro-business and pro-economic growth agenda may not come into fruition after all. Since stocks have rallied and bonds have fallen (higher yields and mortgage rates) since the election based on that agenda, we should see stocks backtrack and bonds rally.

Medium


Unknown


None

There are a handful of relevant economic reports scheduled for release next week, but none are considered to be key releases. There are also a couple of Treasury auctions that may come into play and another round of Fed speaking engagements. Monday has nothing of importance scheduled. Look for details on 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.