Rate Lock Advisory

Friday, February 21th

Friday’s bond market has opened well in positive territory as stocks fall and concerns about the future of U.S. economy grow. The major stock indexes are showing heavy losses with the Dow down 245 points and the Nasdaq down 132 points. The bond market is currently up 17/32 (1.46%), which should improve this morning’s mortgage rates again by approximately .125 - .250 of a discount point.



30 yr - 1.46%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Existing Home Sales from National Assoc of Realtors

This morning’s housing report from the National Association of Realtors showed a decline of 1.3% in home resales last month. A decline is good news for bonds and mortgage rates because a soft housing sector makes broader economic growth more difficult. However, analysts were expecting to see a larger decline in sales. In other words, the data was stronger than expected, making it neutral to slightly unfavorable for bonds and mortgage rates. Fortunately, the overall tone of the bond market remains favorable with the positive momentum bring yields and mortgage rates lower.



Bond Trends

It is worth noting that the 30-year Treasury Bond yield set a new record low today. The benchmark 10-year Treasury Note yield is still a bit off its record low of 1.385%, but today’s improvement is closing the gap. With stock prices still considered to be high, uncertainty of the final impact the coronavirus will have on the global economy and lingering questions about the future of our economy still in place, there is a very good possibility of seeing a new low set for the 10-year yield sometime this year also. Since mortgage rates tend to track bond yields, this would be good news for mortgage shoppers.




Next brings us several economic reports that may influence mortgage rates, but none are scheduled for Monday. The most important data comes later in the week, including one that is considered to be highly important to the markets. Look for details on next week’s events 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... Float 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.