Rate Lock Advisory

Friday, June 14th

Friday’s bond market has opened in positive territory following favorable economic news and overnight gains in global bond trading. Stocks are showing early weakness with the Dow down 300 points and the Nasdaq down 16 points. The bond market is currently up 12/32 (4.20%), which should improve this morning’s mortgage pricing by approximately .125 of a discount point.



30 yr - 4.20%







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 30-year Treasury Bond auction went almost as well as Tuesday’s sale. The benchmarks indicated a fairly strong demand from investors, meaning there still is a good appetite for long-term securities. We saw bonds improve slightly after results were announced at 1:00 PM ET, but not enough to cause widespread improvements to mortgage pricing. It appears lenders opted to wait for this morning’s pricing to reflect that move.



Univ of Mich Consumer Sentiment (Prelim)

The University of Michigan posted their preliminary Index of Consumer Sentiment for June at 10:00 AM ET this morning. It revealed consumer confidence in their own financial and employment situations was sharply softer than expected last month, falling from April’s 69.1 to 65.6 for May. Forecasts had the index rising noticeably to 73.0, meaning consumers are less likely to spend than many had thought. That is good news for bonds and mortgage rates because weaker consumer spending restricts economic growth.



Retail Sales

Next week has a handful of relevant economic reports scheduled, one of which is extremely influential. That would be the Retail Sales report early Tuesday morning. The week starts light with nothing of importance set for Monday and the U.S. financial markets will be closed Wednesday for the Juneteenth recognition. In addition to the data, there is also another Treasury auction and a few Fed-member speaking engagements scheduled. Look for details on all of next week’s activities in Sunday evening’s weekly preview.

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.

Delphi Investment Realty

6303 Blue Lagoon Drive Suite 400
Miami, FL 33126