Rate Lock Advisory

Wednesday, December 4th

Wednesday’s bond market has opened in negative territory despite favorable economic news. Stocks may be contributing to this morning’s weakness with fairly sizable gains in the major indexes. The Dow is currently up 176 points while the Nasdaq has gained 53 points. The bond market is currently down 15/32 (1.76%), which with some weakness late yesterday should push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point.



30 yr - 1.76%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



ADP Employment

November’s ADP Employment report showed that only 67,000 new private-sector jobs were added to the economy, falling well short of the 145,000 that was expected. While the weaker number is technically great news for bonds and mortgage rates, the fact is that this is not a governmental report and some analysts don’t put as much faith in the data as others do. That may be contributing to this morning’s muted response to the release.



Factory Orders

Tomorrow’s sole monthly report will be October's Factory Orders at 10:00 AM ET. This Commerce Department report is similar to the Durable Goods Orders report that was released last week, except this one includes new orders for both durable and non-durable goods. This release usually doesn't have a significant influence on bond trading since a good portion of the data has previously been made public. Analysts are expecting to see a 0.3% rise in new orders. Favorable news would be a weaker reading because it would signal softer than expected manufacturing sector activity that makes mortgage-related bonds more appealing to investors.



Employment Situation

What the markets will be looking towards is Friday morning’s key Employment report. This is an extremely relevant release that gives us insight into different aspects of the employment sector. It often is a market-mover and can lead to a noticeable change in rates with a slight or moderate variance from forecasts.

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.