Rate Lock Advisory

Tuesday, November 12th

Tuesday’s bond market has opened in positive territory as traders return from the long weekend. Stocks are showing moderate gains of 53 points in the Dow and 30 points in the Nasdaq. The bond market is currently up 3/32 (1.93%), which should improve this morning’s mortgage rates by approximately .125 of discount point if comparing to Friday’s early pricing. The bond market was closed yesterday in observance of the Veteran’s Day holiday.



30 yr - 1.93%







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 being released today. The rest of the week brings us the release of only four pieces of economic data that likely will affect mortgage rates. However, most of what is scheduled for release is considered to be highly important. There also is a batch of Fed member speaking engagements scheduled this week, including two by Fed Chairman Powell to congress.



Consumer Price Index (CPI)

October's Consumer Price Index (CPI) will start this week’s activities early tomorrow morning. The CPI measures inflationary pressures at the consumer level of the economy and is one of the most important reports the bond market sees each month. If it reveals stronger than expected readings, indicating that inflationary pressures are rising at the consumer level, the bond market will probably react negatively and cause mortgage rates to move higher. Analysts are expecting to see a 0.3% increase in the overall reading and a 0.2% increase in the core data. The core reading is the more important of the two because it excludes more volatile food and energy prices.



Fed Talk

This week’s congressional testimony by Fed Chairman Powell will take place tomorrow and Thursday mornings. These events always take centerstage as market traders watch his prepared words and the question and answer session that follows. They are looking for any tidbits about the Fed’s thought process on future monetary policy moves (or lack of). Whenever the Fed appears before congress, we can expect to see some volatility in the markets. He will be appearing during late morning hours both days, so expect to see a reaction before noon.




Overall, tomorrow is the best candidate for most important day of the week due to the significance of the CPI release and Fed Chair Powell’s testimony taking place the same morning. Although, Friday could be active also with the retail sales report having the potential to heavily influence the markets. Also worth noting is the public impeachment hearings set to start tomorrow. These should not directly impact bonds or mortgage rates at this time, but as the process proceeds it will be interesting to see if they come into play. With so much going on this week, it would be prudent to watch the markets if still floating an interest rate and closing in the near future as they may be volatile multiple days.

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.

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