Rate Lock Advisory

Friday, November 7th

Friday’s bond market has opened has opened flat despite more stock selling and favorable economic news. Stocks are showing noticeable losses of 171 points in the Dow and 319 points in the Nasdaq. The bond market is currently unchanged from yesterday’s close, which should keep this morning’s mortgage rates close to Thursday’s early pricing.

0/32


Bonds


30 yr - 4.08%

171


Dow


46,740

319


NASDAQ


22,734

Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock

Medium


Positive


Univ of Mich Consumer Sentiment (Prelim)

The University of Michigan announced late this morning that their preliminary November Index of Consumer Sentiment reading stands at 50.3, down from October’s 53.6. Analysts were expecting to see a reading in the neighborhood of 53.2, meaning surveyed consumers were less optimistic about their own financial situations than thought. This is favorable news for bonds and mortgage rates because waning confidence usually translates into softer consumer spending levels that make up over two-thirds of the U.S. economy.

Medium


Unknown


Treasury Auctions (5,7,10,20,30 year)

Next week has no relevant economic data set for release. The previously scheduled reports, which included three highly important releases, won’t be posted because of the shutdown. There doesn’t appear to be any relevant releases from non-governmental agencies either. We do have a holiday closure Tuesday for the bond market (stocks will trade) and two fairly influential Treasury auctions that will give us an idea about investor appetite for long-term debt. Fed speeches and the auctions are likely to drive bond trading and mortgage pricing next week. The week starts with nothing scheduled Monday that we need to be concerned about. Look for details on next week’s limited 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... Lock if my closing was taking place between 21 and 60 days... Lock 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.


Amity Mortgage LLC

Your friends in the mortgage business.

185 Meadow St
Naugatuck, CT 06770