Rate Lock Advisory

Monday, May 10th

Monday’s bond market has opened in positive territory despite a lack of economic or other news to drive trading. Stocks are starting the week mixed, pushing the Dow higher by 244 points and the Nasdaq lower by 165 points. The bond market is currently up 5/32 (1.56%), which should improve this morning’s mortgage rates by approximately .125 of a discount point if comparing to Friday’s early pricing.

5/32

Bonds

30 yr - 1.56%

244

Dow

35,022

165

NASDAQ

13,586

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Low

Unknown

None

There is nothing scheduled for today that is expected to affect mortgage rates. The rest of the week has five monthly economic reports for the markets to digest in addition to a couple of Treasury auctions that we will be watching. A good portion of this week's data is highly important to the financial and mortgage markets, meaning it may be an active week for rates- especially the latter days.

Medium

Unknown

Fed Talk

Tomorrow’s calendar is also empty of economic data. However, there are a batch of Fed member speaking engagements that will draw some attention. It is not likely the markets will have a significant reaction to any of them, but with little else to drive bond trading, it is possible for one of more of them to cause a slight change in rates.

High

Unknown

Consumer Price Index (CPI)

April's Consumer Price Index (CPI) will start the important economic releases Wednesday morning, following by the Producer Price Index (PPI) Thursday and Retail Sales data Friday. There are also Treasury auctions Wednesday and Thursday that may have an impact on rates during early afternoon trading.

Medium

Unknown

None

Wednesday is the best candidate for most active day for rates due to the importance of the CPI and the afternoon auction results. Tomorrow may be the calmest day unless something unexpected happens, such as a large move in stocks. We should see the most movement in rates the latter days of the week.

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... Float 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.

Milestone Mortgage, Inc. NMLS#136714

7168 Graham Road Suite 175
Indianapolis, IN 46250-2683
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