Rate Lock Advisory

Monday, September 18th

Monday’s bond market has opened in negative territory as stocks start the week in positive ground. The Dow is currently up 63 points while the Nasdaq has gained 27 points. The bond market is currently down 5/32 (2.21%), which may push this morning’s mortgage rates slightly higher than Friday’s morning pricing.



30 yr - 2.21%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock




There is nothing of importance scheduled for release today that is expected to affect mortgage rates. The rest of the week brings us the release of only three monthly economic reports, none of which are considered to be highly important. The main focus of the week will be the Federal Reserve and their mid-week events.



Housing Starts (New Residential Construction)

August's Housing Starts will start this week’s activities at 8:30 AM ET tomorrow morning. It tracks groundbreakings of new home projects but likely will not affect mortgage rates unless its results vary greatly from forecasts. It is expected to show that starts of new homes rose last month, indicating strength in the housing sector. That is bad news for the bond market and mortgage rates because a stronger housing sector makes broader economic growth more likely. However, this data is not important enough to cause a noticeable change in mortgage rates unless there is a wide variance between forecasts and the actual results.




Overall, Wednesday is clearly the most important day of the week due to the FOMC meeting, economic projections and press conference with Fed Chair Janet Yellen. Friday is the best candidate for calmest day for mortgage rates. I believe we are going to see a fair amount of volatility in the markets and mortgage pricing this week. Therefore, please proceed carefully 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... 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.