Daily Rate Lock Advisory

Indexes Affecting Rate Lock

Medium

Neutral

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

Yesterday’s 30-year Treasury Bond auction didn’t draw the same level of interest as Wednesday’s 10-year Note sale. The benchmarks we use to gauge investor demand indicated average interest compared to other recent sales instead of the strong level we got Wednesday. The broader bond market was mostly unresponsive to the 1:00 PM ET results announcement. Bonds did weaken a little during afternoon trading, but that move seemed to be too late in the day to blame the auction.

Medium

Positive

Univ of Mich Consumer Sentiment (Prelim)

This morning’s sole relevant economic release was September’s Index of Consumer Sentiment from the University of Michigan at 10:00 AM ET. They announced a reading of 55.4 that was well below forecasts of 58.1 and a decline from August’s 58.2. The lower reading means surveyed consumers currently are not as optimistic about their own financial situations as they were last month. Since waning confidence usually leads to weaker consumer spending that makes up over two-thirds of the U.S. economy, we can label the report good news for bonds and mortgage rates.

High

Unknown

Federal Open Market Committee (FOMC) Statement

Next week is light in terms of the number of scheduled economic releases but it also includes a very influential consumer spending report and the highly anticipated FOMC meeting that is expected to bring the first Fed rate cut since last December. This FOMC meeting also includes updated economic forecasts with predictions for future rate cuts. We will detail expectations for it and the rest of the week’s other 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)

Federal Open Market Committee (FOMC) Statement

Float / Lock Recommendation