Rate Lock Advisory

Tuesday, May 21th

Tuesday’s bond market has opened in positive territory despite little news to drive trading. Stocks are mixed but calm with the Dow up 58 points and the Nasdaq down 30 points. The bond market is currently up 11/32 (4.40%), which should improve this morning’s mortgage rates by approximately .125 - .250 of a discount point.



30 yr - 4.40%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Fed Talk

Today doesn’t have anything scheduled that we need to be concerned about with exception to a bunch of Fed-member speeches throughout the day. There are a couple in progress at this time, but none have generated any major headlines. This morning’s gains could just be an extension of yesterday’s late strength.



Existing Home Sales from National Assoc of Realtors

This week’s economic calendar starts with April's Existing Home Sales data at 10:00 AM ET tomorrow. The National Association of Realtors is expected to announce a modest rise in home resales last month. A decline in sales would be good news for bonds and mortgage rates because a softening housing sector makes broader economic growth more difficult and bonds tend to thrive in weaker economic conditions. This is a moderately influential piece of data that usually doesn’t have a noticeable impact on mortgage rates.



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

Tomorrow also has two afternoon events that we will be watching. First will be results of the 20-year Treasury Bond auction at 1:00 PM ET. This sale will not directly impact mortgage pricing, although it can influence general bond market sentiment. If the auction goes poorly, we could see broader selling in the bond market that leads to a slight upward revision to mortgage rates. On the other hand, a strong demand from investors may translate into slightly lower mortgage rates during early afternoon hours.



FOMC Meeting Minutes

We will also get the minutes from the April 31 – May 1 FOMC meeting at 2:00 PM ET tomorrow. Market participants will be looking for how Fed members feel about inflation, employment, economic growth and their thoughts about future monetary policy moves. We likely are not going to see too much in the minutes that we don't already know, but the possibility does exist. If there is a reaction to the minutes, it will come during midafternoon 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.

Integrated Financial Solutions, LLC

11110 Dovedale Ct 28A
Marriottsville, MD - Maryland 21104