Rate Lock Advisory

Tuesday, December 7th

Tuesday’s bond market has opened in negative territory again as Omicron concerns wane in the markets. Stocks are not helping with the Dow up 524 points and the Nasdaq up 428 points. The bond market is currently down 6/32 (1.45%), which with late losses yesterday should push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point if compared to Monday’s early pricing.



30 yr - 1.45%







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)

Revised 3rd Quarter Productivity numbers were posted at 8:30 AM ET this morning, revealing a 5.2% decline in worker output and a 9.6% rise in unit labor costs. Both readings were revised in a direction that was negative for bonds and mortgage rates. While this is bad news for rates, it is not the cause of this morning’s bond losses.



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

Tomorrow and Thursday both have no relevant monthly economic data scheduled, but they do have Treasury auctions scheduled that often affect rates during afternoon trading. 10-year Treasury Notes will be sold tomorrow, followed by 30-year Bonds Thursday. Results of both will be posted at 1:00 PM ET each day, making them early afternoon events. If they are met with a strong demand from investors, particularly international buyers, we should see strength in the broader bond market and improvements to mortgage pricing during afternoon hours. On the other hand, a weak interest in the auctions could lead to upward revisions to 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.

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