Daily Rate Lock Advisory

Indexes Affecting Rate Lock

Medium

Positive

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

Yesterday’s 30-year Treasury Bond auction drew a very strong demand from investors. Nearly all of the benchmarks showed a high level of interest in the sale, indicating a good appetite for long-term securities. This is good news for the overall bond market and mortgage rates. The weakness in bonds and upward revision to mortgage pricing late yesterday were not due to this auction. Bonds were already moving lower (yields higher) long before the auction results were announced at 1:00 PM ET.

Medium

Negative

Univ of Mich Consumer Sentiment (Prelim)

Today’s only economic report was the University of Michigan's Index of Consumer Sentiment for August at 10:00 AM ET. It came in at 55.1, up from July’s 51.5 and higher than it was expected to be. The noticeable increase means surveyed consumers felt better about their own financial situations than they did last month. We can consider that unfavorable news for bonds and mortgage rates because rising confidence usually translates into stronger consumer spending numbers that fuel economic growth.

Medium

Unknown

None

Next week brings us a handful of events that may influence mortgage rates. They include a couple pieces of housing data and a major consumer spending report that is released the same day as the minutes from the last FOMC meeting. There is nothing of importance scheduled for Monday or next Friday, leaving the middle part of the week the days we need to be concerned with. Look for details on all of next week’s activities in Sunday evening’s weekly preview.

Rate Lock Advisory

Mortgage Rate Trend

Indexes Affecting Rate Lock

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

Univ of Mich Consumer Sentiment (Prelim)

None

Float / Lock Recommendation