Rate Lock Advisory

Wednesday, December 7th

Wednesday’s bond market has opened in positive territory following favorable economic news. Stocks are showing moderate losses of 46 points in the Dow and 82 points in the Nasdaq. The bond market is currently up 18/32 (3.46%), which should improve this morning’s mortgage rates by approximately .375 - .500 of a discount point. Part of this morning’s improvement is a result of another afternoon rally in bonds yesterday.



30 yr - 3.46%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



Productivity and Costs (Quarterly)

Today’s only relevant economic data was revised 3rd Quarter Productivity numbers at 8:30 AM ET. The release showed that worker productivity rose 0.8% during the July through September months. This was stronger than the preliminary estimate of 0.3%, making it good news for bonds and mortgage rates. Another piece of favorable news was a downward revision to the labor costs reading in the report, easing wage inflation concerns.



Weekly Unemployment Claims (every Thursday)

Tomorrow also has a minor piece of economic data set for release. We will get weekly unemployment figures at 8:30 AM ET. They are expected to show 220,000 new claims for unemployment benefits were filed last week, down a little from the previous week’s 225,000. Rising claims is a sign of employment sector weakness, so the higher the number, the better the news it is for mortgage rates. However, because this is just a weekly snapshot, we will need to see a large variance from forecasts for the report to affect mortgage rates.



Producer Price Index (PPI)

Our economic calendar has been quiet so far this week, but that will change Friday morning when we get an important inflation reading at the manufacturing level of the economy. In addition to the Producer Price Index (PPI), there is also a consumer sentiment index being released. While it is generally considered to be moderately important to rates, it is more influential than anything else posted so far this 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... Lock if my closing was taking place between 21 and 60 days... Lock 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.