Rate Lock Advisory

Tuesday, April 13th

Tuesday’s bond market has opened in positive territory despite inflation news that was a bit stronger than expected. Stocks are mixed with the Dow down 119 points and the Nasdaq up 92 points. The bond market is currently up 4/32 (1.65%), which should improve this morning’s mortgage rates slightly.



30 yr - 1.65%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



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

Yesterday’s 10-year Treasury Note auction didn’t go as well as hoped. The benchmarks showed average and below average demand for the securities. Fortunately, the bond market did not have a negative reaction to the results. However, yesterday’s sale prevents us from being too optimistic about today’s 30-year Treasury Bond auction. If today’s sale draws the same level of interest as yesterday’s auction, we may see bonds weaken and mortgage rates move slightly higher this afternoon.



Consumer Price Index (CPI)

March’s Consumer Price Index (CPI) was posted at 8:30 AM ET this morning, revealing a 0.6% rise in the overall reading and a 0.3% increase in the more important core data. Both readings were 0.1% higher than expected, indicating inflationary pressures at the consumer level of the economy were stronger the thought. That makes the data bad news for bonds and mortgage rates.



Fed Beige Book

Tomorrow’s only release is an afternoon event. The Federal Reserve's Beige Book report will be posted at 2:00 PM ET. This report is named simply after the color of its cover but provides opinion on economic conditions throughout the U.S. by Fed region. Since the Fed relies heavily on the contents of this report during their FOMC meetings, its results can have a fairly big impact on the financial markets and mortgage rates if it reveals any significant surprises. If there is a reaction, it will come during mid-afternoon trading.

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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