Rate Lock Advisory

Wednesday, October 5th

Wednesday’s bond market has opened well in negative territory, creating another turn in the recent rollercoaster. Stocks are in selling mode also, pushing the Dow lower by 338 points and the Nasdaq down 209 points. The bond market is currently down 37/32 (3.78%). This should create an increase of approximately .500 - .625 of a discount point in this morning’s rates if compared to Tuesday’s early pricing.



30 yr - 3.78%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



ADP Employment

Today’s release of September's ADP Employment report revealed 208,000 new private sector jobs were added during the month. This was a little higher than forecasts, but within a reasonable variance. What we can consider bad news was a sizable upward revision of 53,000 to August’s number that indicated the private sector was much stronger than thought. That said, this report doesn’t carry the significance to cause this much of a move in the markets this morning.



Inflation News

The markets appear to be reacting to OPEC’s news of a big reduction in oil output. This was done to boost the overall price of crude oil, which will translate into higher costs for gas at the pump and other energy costs. Those concerns raise inflation fears that make long-term securities such as mortgage bonds less appealing to investors. Hence, a noticeable sell-off in bonds this morning.



Weekly Unemployment Claims (every Thursday)

Tomorrow’s only relevant economic data will be last week’s unemployment figures at 8:30 AM ET. They likely won’t be a market mover, especially with the highly important governmental Employment report coming Friday morning. Analysts are expecting to see 203,000 new claims for benefits were filed. The higher the number, the better the news it is for mortgage rates.

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... Lock 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.