Rate Lock Advisory

Friday, December 1st

Friday’s bond market has opened in positive territory following weaker than expected manufacturing news. Stocks are mixed again with the Dow showing an 89-point gain and the Nasdaq down 37 points. The bond market is currently up 10/32 (4.29%), which should improve this morning’s mortgage rates by approximately .125 - .250 of a discount point.



30 yr - 4.29%







Mortgage Rate Trend

Trailing 90 Days - National Average

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

Indexes Affecting Rate Lock



ISM Index (Institute for Supply Management)

November’s manufacturing index from the Institute for Supply Management (ISM) was posted at 10:00 AM ET this morning. It revealed a reading of 46.7, matching October’s number. Analysts were expecting to see an increase that would have meant surveyed manufacturing executives felt business had improved during the month. While a flat reading is more or less neutral for bonds theoretically, the fact we didn’t see an increase is allowing traders to treat the news as favorable for bonds and mortgage rates.



Fed Talk

Also worth noting is that Fed Chairman Powell will be participating in a discussion with the President of Spelman College in Atlanta at 11:00 AM ET and again in a roundtable at 2:00 PM ET. If there are any surprises to come out of these events, we could see a reaction in bonds that affects mortgage rates noticeably.




Next week is another that is packed with economic releases and other events that may influence mortgage rates. It starts with October’s Factory Orders report Monday morning and closes Friday with two reports, one being the almighty monthly Employment report. There is plenty scheduled that we will be watching next week. Look for details on all of it in Sunday evening’s weekly preview.

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... Float 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.

Carolina Equity Services, Inc.

1111 Pemberton Hill Road Ste 101
Apex, NC 27502