Rate Lock Advisory

Wednesday, December 13th

Wednesday’s bond market has opened in positive territory following favorable results in this morning’s inflation data. The major stock indexes are also showing gains with the Dow up 81 points and the Nasdaq up 22 points. The bond market is currently up 5/32 (2.38), which should improve this morning’s mortgage rates slightly. Weakness late yesterday is preventing more of an improvement in this morning



30 yr - 2.38%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



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

Yesterday’s 30-year Treasury Bond auction went much better than Monday’s 10-year sale did with several benchmarks we use to gauge investor demand showing a decent interest in the securities. The bond market improved slightly after results were posted, but not enough to improve mortgage rates or offset the recent negative tone we are seeing in bonds.



Consumer Price Index (CPI)

November's Consumer Price Index (CPI) was released at 8:30 AM ET this morning. It showed a 0.4% rise in the overall reading and a 0.1% increase in the more important core data. The overall reading pegged forecasts, but the core data fell short of the 0.2% increase that was expected. The weaker than thought inflation reading is good news for bonds and mortgage-related securities, leading to this morning’s improvement.



Federal Open Market Committee (FOMC) Statement

This week’s FOMC meeting will adjourn at 2:00 PM ET today. There is a wide consensus that the Fed will raise key short-term interest rates a quarter point today. Along with the post-meeting statement, we will also get to see their revised economic projections. Those will be followed by a press conference with Fed Chair Yellen at 2:30 PM ET. There is a high probability of this afternoon being very active for the financial and mortgage markets.




This report will be updated shortly after the markets have an opportunity to react to the FOMC events. There is highly relevant economic data set for release tomorrow, but it will be addressed in this afternoon’s update.

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.