Rate Lock Advisory

Monday, June 24th

Monday’s bond market has opened flat with almost nothing to drive trading this morning. Stocks are showing early strength with the Dow up 326 points and the Nasdaq up 10 points. The bond market is currently unchanged from Friday’s close (4.25%), but bond gains late Friday should allow this morning’s mortgage rates to be approximately .125 of a discount point lower than Friday’s morning pricing.



30 yr - 4.25%







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 scheduled for today, the only day of the week without at least one item for us to watch. The rest of the week has six monthly and quarterly economic reports that may influence mortgage rates, in addition to a couple of Treasury auctions and more Fed-member speeches. Two of the economic reports are considered to have elevated importance and may impact rates more than the others.



Consumer Confidence Index

Activities begin late tomorrow morning when June's Consumer Confidence Index (CCI) is posted by the Conference Board. The CCI is fairly important to the financial markets because it measures consumer willingness to spend. If consumers are more confident about their own financial and employment situations, they are more apt to make large purchases in the near future. Consumer spending makes up over two-thirds of the U.S. economy, so rising confidence can contribute to overall economic growth. If it shows a sizable increase from last month, we can expect to see a negative reaction in bonds and mortgage rates. Forecasts are predicting a reading of 100.0, down from last month's 102.0 as consumers continue to be cautious about the high cost of goods. The lower the reading, the better the news for bonds and mortgage pricing.



Fed Talk

Tomorrow also has a Fed-member speech that many will be watching and could cause a reaction in the markets. Fed Governor Lisa Cook will be speaking at an Economic Club of New York luncheon at noon ET. The topic is listed as Economic Policy, meaning market participants will be listening for any surprises or thoughts on what the Fed’s next move is and when it may happen.



Inflation News

Overall, Friday is the most important day for rates due to the significance the PCE index carries in the markets. Thursday may also be an active day for rates. If the calmest isn’t today, it may be Wednesday since the week’s least important report comes that day. If floating an interest rate and closing in the near future, keep an eye on the markets- especially the latter days of the week.

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.

Integrity Mortgage and Financial Services Inc

3205 Cascade Dr Ste B
Valparaiso, IN 46383-9142