Monday’s bond market opened in the wrong direction, reclaiming all of last night’s profits and then some more. Shares started the week with a big loss, lowering Dow by 371 points and Nasdaq down by 199 points. The bond market is currently down 8/32 (1.76%), which should result in the morning borrowing rate of around. rate lock advisory
INDEXES AFFECTING RATE LOCK
It is clear that this conflict is taking longer than many analysts think. Despite the large bond meeting during the war, non-bond conditions exist that may have a negative impact on borrowing rates over time in the near future. The recent recession was a major concern for our economy before Russia invaded Ukraine and this war, through sanctions imposed on Russia for doing so, is likely to further fuel oil prices and energy. If traders turn their attention to inflation, bonds will likely lose out, leading to higher interest rates and higher interest rates. rate lock advisory
All in all, it is safe to assume that we will see more fluctuations in the financial and real estate markets this week. The most effective day of measurement could be any day, but today and Thursday (the release of the Consumer Price Index) are the best. Tomorrow looks like the best candidate for a quiet day unless something unexpected happens. Given the volatile nature of the marketplace, it would be wise for them to look at it with interest and to close it soon.
Nothing significant is scheduled for release today. The whole week has only two monthly economic reports set aside for release and one is considered the most important for bonds. We also have a few Treasury auctions that could impact on afternoon prices during the week. Activities do not start until Wednesday afternoon though.
Float / Lock Recommendation
If I were thinking of financing / renewing a home, I would …. Lock if my shutdown happens within 7 days … Lock if my shutdown is between 8 and 20 days … Float if my shutdown Takes place between 21 and 60 days … Float if my closure was in place 60 days from now … This is my only idea of what I would do if I funded a home. It is an opinion and cannot be guaranteed for the benefit of all / any other borrowers.
Once you have a lot of quotes, you may decide that you prefer one lender over another. If your favorite bank doesn’t have a very low rate, you can negotiate a good loan amount. Ask the lender if he can do it better.
The scale lock confirms that it will not. If interest rates rise: This is the best situation: If prices rise, you are safe. Your interest rate is set. This is when the rate lock is the right value.
Locking or closing the mortgage rate means that your interest rate will not change between the offer and the closing, as long as you close within the allotted time and there are no changes in your application. Mortgage interest rates may change daily, sometimes by hour.
When a borrower locks an interest rate on a loan, he or she must repay both the borrower and the lender. The interest rate is locked for the period from the issuance of the loan to its termination.
Locking rate usually lasts from 30 to 60 days, although sometimes it lasts 120 days or more. Some lenders offer a free rate lock for a period of time. After that, however, even kind lenders may charge a fee to extend the lock.