Daily Rate Lock Advisory

Indexes Affecting Rate Lock

Medium

Unknown

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

The calendar begins early Wednesday afternoon with the first of two important Treasury auctions set for this week. 10-year Treasury Notes will be sold Wednesday, followed by 30-year Bonds Thursday. These sales will give us an indication of demand for long-term securities, such as mortgage-related bonds. If the sales are met with a strong demand from investors, we should see the bond market move higher during early afternoon trading those days. However, a lackluster interest from buyers, particularly international investors, will likely lead to broader bond selling. The selling in bonds would result in upward afternoon revisions to mortgage rates.

Medium

Unknown

Univ of Mich Consumer Sentiment (Prelim)

The only monthly report of the week will be February's preliminary reading to the University of Michigan's Index of Consumer Sentiment late Friday morning. This index tracks consumer willingness to spend and usually has a moderate impact on the financial markets because consumer spending is such a large part of the U.S. economy. It is currently expected to show a 65.0 reading, nearly unchanged from January's final reading of 64.9. That would indicate consumers are just as optimistic about their own financial situations as they were last month. Good news for rates would be a large decline in this reading, meaning consumers are less likely to make a large purchase.

Medium

Unknown

None

Overall, no day stands out as the most important of the week for rates with so little scheduled to influence them. The calmest day may be Tuesday unless something unexpected happens. There is a strong possibility of seeing a much calmer week for rates than the past couple. It is still prudent to watch the markets closely if still floating an interest rate and closing in the near future as they can get active without notice.

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