Daily Rate Lock Advisory

Indexes Affecting Rate Lock

High

Negative

Retail Sales

March Retail Sales report was released at 8:30 AM ET this morning, revealing consumers spent much more last month than many had thought. The 1.7% rise in retail-level sales exceeded forecasts of a 1.4% increase. A secondary reading that excludes more volatile and costly auto sales also exceeded expectations (up 1.9% vs 1.2%). These numbers are a sign that consumers continued to spend last month. Because consumer spending makes up over two-thirds of the U.S. economy and bonds are less appealing to investors during stronger economic times, this morning’s report is bad news for mortgage rates.

Medium

Unknown

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

There is no relevant economic data scheduled for release tomorrow. The only scheduled event that we will be watching is the 1:00 PM ET results announcement of the 20-year Treasury Bond auction. If the results show there was a strong demand for the securities, we could see bonds improve this afternoon, possibly leading to a minor improvement in mortgage pricing. On the other hand, a lackluster interest from investors could cause a slight upward revision to rates before the end of the day.

Rate Lock Advisory

Mortgage Rate Trend

Indexes Affecting Rate Lock

Retail Sales

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

Float / Lock Recommendation