Rate Lock Advisory Friday, March 24th Friday’s bond market has opened in positive territory following favorable economic news and overnight gains. Stocks are reacting to the same headlines in a different way. The Dow is currently down 173 points while the Nasdaq is down 65 points. The bond market is currently up 11/32 (3.37%), but weakness late in the day yesterday should keep this morning’s mortgage rates close to Thursday’s early morning levels. 11/32 Bonds 30 yr - 3.37% 173 Dow 31,931 65 NASDAQ 11,722 Mortgage Rate Trend Trailing 90 Days - National Average 30 Year Fixed 15 Year Fixed 5/1 ARM Indexes Affecting Rate Lock HighPositiveDurable Goods OrdersFebruary’s Durable Goods Orders report was released at 8:30 AM ET this morning. It revealed a 1.0% decline in new orders for big-ticket items such as electronics, refrigerators and airplanes at U.S. factories. This was well off the increase of 1.6% that was expected, even for this report that is known to be volatile from month to month. The decline indicates weakness in the manufacturing sector that makes the report good news for bonds and mortgage rates. HighPositiveGeopolitical/Financial IssuesIn addition to this morning’s economic data, the markets are also reacting to overseas concerns that Deutsche Bank may be having issues related to the recent banking crisis. Just as fears of a spreading problem appeared to be easing, a new name comes to the forefront. It will be interesting to see if this continues to be in the headlines this weekend or if other institutions come into play also. MediumUnknownNoneNext week brings us a handful of relevant economic reports and a couple of Treasury auctions that may influence mortgage rates. It starts light with nothing scheduled for Monday. None of the reports are considered key or expected to be a strong market-mover, but we will get the Fed’s preferred inflation reading Friday morning. Now that the FOMC meeting is behind us and the required quiet-period has ended, we will start seeing Fed member speaking engagements again that could also have a noticeable impact on bond trading and mortgage rates. Look for details on all of next week’s activities 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.