Welcome to Monday Mortgage Call, a weekly prognosis by Boston mortgage broker Brian Cavanaugh of where the all-important lending rates might be headed.
Overall, there isn't a specific day that stands out as the most important day of the week this week. There is no data likely to lead to a sizable change in mortgage rates, so, if there are any significant moves in rates, they will probably come from other sources such as a huge stock rally or sell-off.
Wednesday's 10-year note auction could be interesting and will have a direct impact on rates, so by default we will label it as the most important day. Tuesday may also be an active day as the bond market opens after the Friday sell-off that was followed by a three day weekend. I never recommend ignoring the markets as momentum can pick up or change direction unexpectedly at any time.
After we get past Tuesday's potential uneventful or highly active open, however, I just don't see anything to be too concerned or optimistic about. Still, maintaining some type of contact with your mortgage professional is prudent if floating an interest rate.
As for whether you should lock in an interest rate now, I would:
LOCK if my closing was taking place within seven days…
LOCK if my closing was taking place between eight and 20 days…
LOCK if my closing was taking place between 21 and 60 days…
LOCK if my closing was taking place over 60 days from now…