Rate Lock Advisory

Monday, May 6th

Monday’s bond market has opened in positive territory to start the week with an improvement in rates. Stocks are showing early strength with the Dow up 104 points and the Nasdaq up 100 points. The bond market is currently up 3/32 (4.50%), which should keep this morning’s mortgage rates close to Friday’s early pricing.

3/32

Bonds

30 yr - 4.50%

104

Dow

38,780

100

NASDAQ

16,258

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Low

Positive

Employment Situation

There is no relevant economic data set for release today. With few relevant news headlines over the weekend, we are seeing more or less an extension of Friday’s post-Employment report rally carry into this morning’s session. If you saw an afternoon improvement to rates Friday, you likely are seeing little change in this morning’s pricing.

Medium

Unknown

Treasury Auctions (5,7,10,20,30 year)

In fact, the week has only one monthly report in addition to a couple of Treasury auctions that may affect rates during afternoon hours midweek. We also have plenty of Fed speaking appearances and more corporate earnings to watch this week. Don’t be surprised to see some pressure in bonds and mortgage pricing following such a quick and strong rally, assuming there are no major surprises in this week’s activities. By no means are we indicating a reversal of last week’s improvements, but without some big news to fuel the rally further bond traders may adjust holdings (sell) to lock in some of last week’s profits.

Medium

Unknown

Fed Talk

We only have Fed speeches to watch the first few days. There is at least one speech scheduled each day of the week. The current calendar doesn’t show Chairman Powell making one, but with so little else coming this week, their words may have a stronger impact on trading than normal even if there are no major surprises.

---

Unknown

None

Overall, Wednesday is the best candidate for most active day for rates due to the 10-year Treasury Note auction and several Fed speeches scheduled. The calmest day may be tomorrow unless something unexpected happens. We should see a relatively calm week compared to others recently, but the markets can still get active without notice. Therefore, proceed cautiously if still 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.

Sunrise Real Estate Group Broker/Owner B. S. Law

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