Rate Lock Advisory

Friday, July 23th

Friday’s bond market has opened in negative territory as investors prepare for next week’s busy schedule. Stocks appear to be closing the week on a positive note with the Dow up 119 points and the Nasdaq up 36 points. The bond market is currently down 3/32 (1.28%), but strength during afternoon trading Thursday should allow this morning’s mortgage rates to be approximately .125 .250 of a discount point lower than yesterday’s early pricing.

3/32


Bonds


30 yr - 1.28%

119


Dow


34,943

36


NASDAQ


14,720

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Low


Negative


Bond Trends

There is nothing scheduled for today that is expected to affect mortgage rates. The early weakness in bonds doesn’t come as a surprise considering the strength of the recent rally. With little to drive trading today and so much scheduled next week, it is a good opportunity for traders to capture some of the profits from the rally. Unless something unexpected happens, it is safe to assume that we won’t get an intraday improvement to rates today.

High


Unknown


None

Next week is packed with events that may move rates, including the initial GDP reading for the 2nd quarter that is extremely important to the markets. In addition to a slew of economic data, we also have a couple of Treasury auctions to digest and another FOMC meeting taking place. There is at least one event scheduled each day, with several having multiple items that can have an impact on mortgage pricing.

Low


Unknown


New Home Sales

Activities start Monday morning with the release of the June’s New Home Sales. This report tracks the small portion of all home sales that yesterday’s Existing Home Sales did not, meaning it likely won’t have a noticeable impact on rates unless it shows a huge variance from forecasts. 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... 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.


The ProTon Group, Inc.

119 Jadestone
Irvine, California 92603