Rate Lock Advisory

Wednesday, December 8th

Wednesday’s bond market has opened in negative territory as concerns about the economic impact of the Omicron variant continue to fade. Stocks are mixed but fairly calm with the Dow up 32 points and the Nasdaq down 29 points. The bond market is currently down 6/32 (1.50%), which with afternoon losses yesterday are going to cause an increase of approximately .125 - .250 of a discount point in this morning’s mortgage rates.



30 yr - 1.50%







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)

There is no relevant economic data being released today. We do have the 10-year Treasury Note auction taking place that may affect rates this afternoon. Good news for rates would be a strong demand from investors, indicating a good appetite for longer-term securities such as mortgage bonds. Results will be posted at 1:00 PM ET, meaning if there is a reaction, it will come during early afternoon trading.



Weekly Unemployment Claims (every Thursday)

Tomorrow’s only economic data worth watching is the weekly unemployment update at 8:30 AM ET. It is expected to show 225,000 new claims for benefits were filed during the week, up modestly from the previous week’s 222,000. Rising claims is good news for bonds because it is a sign of employment sector weakness. In other words, the higher the number of new filings, the better the news it is for mortgage rates. However, since this is only a weekly snapshot of the sector, it will take a wide variance from forecasts to have a noticeable impact on mortgage pricing.



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

Also taking place tomorrow is the 30-year Treasury bond auction. As with today’s sale, the stronger the demand for the securities, the better the news it is for mortgage rates tomorrow afternoon.

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.