Rate Lock Advisory

Wednesday, June 7th

Wednesday’s bond market has opened in negative territory again following news of the Canadian central bank making an unexpected rate hike. Stocks are showing minor gains with the Dow up 24 points and the Nasdaq up 55 points. The bond market is currently down 13/32 (3.72%), which should erase all of yesterday’s late gains and then some. We can expect this morning’s rates to be approximately .125 of a discount point higher than Tuesday’s early pricing.

13/32

Bonds

30 yr - 3.72%

Dow

33,598

NASDAQ

13,331

Mortgage Rate Trend

Trailing 90 Days - National Average

30 Year Fixed
15 Year Fixed
5/1 ARM

Indexes Affecting Rate Lock

Medium

Negative

Geopolitical/Financial Issues

There was no relevant economic data posted this morning. It appears bonds are reacting to news from the Bank of Canada that they had raised their key short-term interest rate by a quarter of a percent, ending their pause in hikes. The move came as a surprise, causing a negative reaction in our bond market also since it signals inflation is still a concern in the global economy.

Medium

Unknown

Weekly Unemployment Claims (every Thursday)

Tomorrow’s only event is the release of last week’s unemployment figures. They are expected to show 237,000 new claims for benefits were filed, up from the previous week’s 232,000 initial filings. Rising claims are a sign of weakness in the employment sector, so the higher the number tomorrow, the better the news it is for rates. However, this is only a weekly snapshot that normally requires a wide variance from forecasts for it to have a noticeable impact on 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.