The Massachusetts Mortgage Broker

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Tuesday’s bond market has opened up slightly, but not enough to improve mortgage rates. The stock markets are showing minor gains with the Dow up 13 points and the Nasdaq up 9 points. The bond market is currently up 4/32, which should keep this morning’s Massachusetts mortgage rates at yesterday’s levels.

There is no relevant economic data scheduled for release today or tomorrow morning. The 10-year Treasury Note auction will be held tomorrow while the 30-year bond sale will be held Thursday. Results of both sales will be posted at 1:00 PM ET of each day. If investor demand was high, we may see bonds rally during afternoon trading, however, weak demand could lead to selling and an increase to Massachusetts mortgage rates. The results of the last sales do not give us much to look forward to, so it is not likely that these auctions will fuel a bond rally and a downward trend in mortgage pricing.

The week’s first factual economic data will come Thursday morning. January’s Goods and Services Trade Balance will be released early Thursday morning. It gives us the size of the U.S. trade deficit and is expected to show a $41.0 billion deficit. It is the week’s least important piece of news and likely will not influence Massachusetts mortgage rates much.

Also Thursday is the weekly release of unemployment figures from the Labor Department. They are expected to say that 460,000 new claims for unemployment benefits were filed last week, which would be a decline from the previous week. The larger the number, the better the news for bonds and mortgage pricing. However, since it tracks only a week’s worth of new claims, it usually takes a wide variance between forecasts and the actual total for it to affect mortgage rates.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Lock if my closing was taking place within 7 days…
Lock if my closing was taking place between 8 and 20 days…
Lock if my closing was taking place between 21 and 60 days…
Float if my closing was taking place over 60 days from now.

This is only a general opinion of what I would do if I were considering whether to lock or float a Massachusetts mortgage based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.

Copyright : Mortgage Commentary

Geof McLaughlin, better known as The Massachusetts Mortgage Broker, is a nationally acclaimed mortgage professional committed to educating and empowering consumers about all things mortgage through his popular Massachusetts Mortgage Broker blog.

Geof is a top loan originator for one of the country’s leading mortgage companies, Mortgage Master Inc, with a proven reputation of offering its clients the best Massachusetts mortgage rates and lowest closing costs. He can be reached directly at 508.656.0055 or at geof@MAMortgageBroker.com.

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Monday’s bond market has opened in negative territory, extending last week’s generally negative tone. The stock markets are flat with both the Dow and Nasdaq nearly unchanged from Friday’s close. The bond market is currently down 8/32, but we will still likely see a small improvement in Massachusetts mortgage rates due to strength in mortgage bonds late Friday.

There is no relevant economic data scheduled for release today. This makes it likely that any changes to mortgage pricing will come from swings in stock prices. If the stock markets move higher from current levels, we may see bonds worsen and mortgage rates revise higher later today. If the major stock indexes move lower, Massachusetts mortgage rates may follow suit.

The rest of the week brings us the release of three economic reports along with the 10-year Treasury Note and 30-year Bond auctions. All of the data will be posted the latter part of the week. Only one of the three reports is considered to be of high importance to the markets, so today may not be the only day we look towards the stock markets for bond direction.

There are no relevant events scheduled for tomorrow or Wednesday morning either. The 10-year Treasury Note auction is scheduled for Wednesday while the 30-year bond sale will be held Thursday. Results of both sales will be posted at 1:00 PM ET on the sale days. If investor demand was high, we may see bonds rally during afternoon trading, however, weak demand could lead to selling and an increase to Massachusetts mortgage rates. The results of the last sales do not give us much to look forward to, so it is not likely that these auctions will fuel a bond rally and a downward trend in mortgage pricing.

Overall, it will likely be another fairly active week in the mortgage market. Friday will probably be the most important day of the week with the Retail Sales report due, while the calmest day could be today or tomorrow, depending on the stock markets. I am expecting to see the most movement in Massachusetts mortgage rates the latter part of the week, so please be careful if still floating an interest rate.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Lock if my closing was taking place within 7 days…
Lock if my closing was taking place between 8 and 20 days…
Lock if my closing was taking place between 21 and 60 days…
Float if my closing was taking place over 60 days from now.

This is only a general opinion of what I would do if I were considering whether to lock or float a Massachusetts mortgage based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.

Copyright : Mortgage Commentary

Geof McLaughlin, better known as The Massachusetts Mortgage Broker, is a nationally acclaimed mortgage professional committed to educating and empowering consumers about all things mortgage through his popular Massachusetts Mortgage Broker blog.

Geof is a top loan originator for one of the country’s leading mortgage companies, Mortgage Master Inc, with a proven reputation of offering its clients the best Massachusetts mortgage rates and lowest closing costs. He can be reached directly at 508.656.0055 or at geof@MAMortgageBroker.com.

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

This week brings us the release of three economic releases for the bond and mortgage markets to digest along with 10-year Treasury Note and 30-year Bond auctions. All of the data will be posted the latter part of the week. Only one of the three reports is considered to be of high importance to the markets, so several days will likely be influenced more by stock trading and other factors than the economic news of the day.

There are no relevant events scheduled for Monday or Tuesday. The 10-year Treasury Note auction is scheduled for Wednesday while the 30-year bond sale will be held Thursday. Results of both sales will be posted at 1:00 PM ET on the sale days. If investor demand was high, we may see bonds rally during afternoon trading, however, weak demand could lead to selling and an increase to Massachusetts mortgage rates. The results of the last sales do not give us much to look forward to, so it is not likely that these auctions will fuel a bond rally and a downward trend in mortgage pricing.

January’s Goods and Services Trade Balance is the week’s first economic data. It comes early Thursday morning and gives us the size of the U.S. trade deficit. It is the week’s least important piece of news and likely will not influence Massachusetts mortgage rates much. Current forecasts are calling for a $41.0 billion trade deficit during January.

There will be two reports posted Friday morning. The first is at 8:30 AM and is the most important of the week. This is when February’s Retail Sales data will be posted. It is extremely important to the financial markets because it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, data that is related usually has a big impact on the financial markets. This month’s report is expected to show an increase in sales of approximately 0.2%. If Friday’s release reveals a larger than expected increase, the bond market will likely fall and mortgage rates will move higher. If it reveals a decline, I expect to see bond prices rise and Massachusetts mortgage rates improve Friday morning.

Also on tap Friday is the University of Michigan’s Index of Consumer Sentiment for March at 9:45 AM. This index gives us a measurement of consumer willingness to spend. If confidence is rising, then consumers are more apt to make large purchases. This helps fuel consumer spending and economic growth. A drop in confidence will probably hurt the stock markets and boost bond prices, leading to lower mortgage rates. If the index rises, indicating that confidence is rising and spending will likely rise, we may see Massachusetts mortgage rates move higher late Friday morning. It is expected to show a reading of 73.8, which is a slight increase from February’s final reading.

Overall, it will likely be another active week in the mortgage market. Friday will probably be the most important day of the week with the Retail Sales report due, while the calmest day could be tomorrow or Tuesday, depending on the stock markets. I am expecting to see the most movement in Massachusetts mortgage rates the latter part of the week, so please be careful if still floating an interest rate.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Lock if my closing was taking place within 7 days…
Lock if my closing was taking place between 8 and 20 days…
Lock if my closing was taking place between 21 and 60 days…
Float if my closing was taking place over 60 days from now.

This is only a general opinion of what I would do if I were considering whether to lock or float a Massachusetts mortgage based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.

Copyright : Mortgage Commentary

Geof McLaughlin, better known as The Massachusetts Mortgage Broker, is a nationally acclaimed mortgage professional committed to educating and empowering consumers about all things mortgage through his popular Massachusetts Mortgage Broker blog.

Geof is a top loan originator for one of the country’s leading mortgage companies, Mortgage Master Inc, with a proven reputation of offering its clients the best Massachusetts mortgage rates and lowest closing costs. He can be reached directly at 508.656.0055 or at geof@MAMortgageBroker.com.

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Friday’s bond market opened well in negative territory following the release of stronger than expected employment data. The stock markets are reacting positively to the news with the Dow up 71 points and the Nasdaq up 16 points. The bond market is currently down 19/32, but due to strength in bonds late yesterday, this morning’s increase in Massachusetts mortgage rates should be kept to approximately .125 – .250 of a discount point when compared to yesterday’s morning pricing.

The Labor Department gave us this morning’s key report. It showed that the U.S. unemployment rate remained at 9.7% last month when forecasts had called for a 0.1% increase. The number of jobs lost in the month came in at 36,000 when analysts were expecting a loss of 65,000 jobs. Both of these readings were negative for bonds and Massachusetts mortgage rates and positive for the stock markets since it paints less of a grim picture in the labor market as thought.

A bit of good news for the bond market came in the average hourly earnings reading that rose 0.1%. It was expected to show an increase of 0.2%, meaning income costs did not rise as much as thought. This is an indicator of wage inflation, so the lower the increase, the better for bonds. However, this reading is taking a backseat to the two headline figures of 9.7% and 36,000.

Today’s data didn’t do anything to change my cautious approach towards Massachusetts mortgage rates. There is some concern that the severe weather during February could have skewed the employment numbers. Unfortunately, nobody knows for sure or by how much. Therefore, we are seeing a negative reaction today and that tone will likely continue in the bond market until we see data that contradicts today’s news. So, I would continue to proceed extremely cautiously if still floating an interest rate.

Next week is fairly light in terms of economic releases, but it does bring us one very important report. There are also two relevant Treasury auctions on the calendar, but none of the events that are likely to affect Massachusetts mortgage rates are scheduled for release Monday or Tuesday. Look for more details on next week’s events in Sunday’s weekly preview.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Lock if my closing was taking place within 7 days…
Lock if my closing was taking place between 8 and 20 days…
Lock if my closing was taking place between 21 and 60 days…
Float if my closing was taking place over 60 days from now.

This is only a general opinion of what I would do if I were considering whether to lock or float a Massachusetts mortgage based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.

Copyright : Mortgage Commentary

Geof McLaughlin, better known as The Massachusetts Mortgage Broker, is a nationally acclaimed mortgage professional committed to educating and empowering consumers about all things mortgage through his popular Massachusetts Mortgage Broker blog.

Geof is a top loan originator for one of the country’s leading mortgage companies, Mortgage Master Inc, with a proven reputation of offering its clients the best Massachusetts mortgage rates and lowest closing costs. He can be reached directly at 508.656.0055 or at geof@MAMortgageBroker.com.

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Thursday’s bond market opened in negative territory but has since recovered those losses. The stock markets are showing relatively minor gains as the Dow is up 36 points and the Nasdaq is up 3 points. The bond market is currently almost unchanged from yesterday’s closing level, but due to strength in bonds yesterday we should see an improvement of approximately .125 of a discount point in this morning’s mortgage pricing.

Today’s only relevant report is the Fed Beige Book at 2:00 PM ET. It details economic activity throughout the country by region. The Fed relies heavily on this data during their FOMC meetings, so look for a potential reaction during afternoon trading. It probably will not cause a major sell off in the stock or bond markets, but could cause enough movement in bond prices to possibly improve or worsen Massachusetts mortgage rates slightly if it reveals any significant surprises.

The first of today’s two relevant reports was the revised 4th quarter Productivity Index. It showed an upward revision to an annual rate of 6.7%. This was higher than the preliminary reading of last month and better than forecasts. That means that employees were more productive in quarter than thought, which is good news for bonds and Massachusetts mortgage rates. This is because the economy can grow easier without inflation concerns when productivity is high.

Also posted this morning was January’s Factory Orders that revealed a 1.7% increase in new orders for durable and non-durable goods. This was close to forecasts, but December’s orders were revised higher by 0.5%. Still, this data has had little influence on this morning’s bond trading and Massachusetts mortgage rates.

The Labor Department gave us last week’s unemployment figures, announcing that 469,000 new claims for benefits were filed last week. This was a sizable drop from the previous week, but nearly matched forecasts. It also has not affected today’s mortgage pricing.

Tomorrow morning brings us one of the most important reports we see each month. It will be the Labor Department that is in the spotlight when they release February’s Employment report at 8:30 AM ET. Some of the important portions of the report will give us the unemployment rate, number of new jobs added or lost and the average hourly earnings reading. The best combination for the bond market and Massachusetts mortgage rates would be an increase in the unemployment rate, a large drop in payrolls and little or no increase in earnings. Current forecasts are calling for 0.1% increase in the unemployment rate to 9.8% and approximately 65,000 jobs lost during the month.

I am remaining extremely cautious towards Massachusetts mortgage rates until this report is behind us. There is some room for improvement in the bond market and mortgage rates, but if this data gives us stronger than expected results, indicating that the employment sector is not as bad as feared, we could see a major sell-off in bonds and a significant spike in Massachusetts mortgage rates. However, much weaker than expected data could fuel a bond market rally and lead mortgage rates lower tomorrow and early next week. Either way, I suspect we will have some volatility in the markets tomorrow.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Lock if my closing was taking place within 7 days…
Lock if my closing was taking place between 8 and 20 days…
Lock if my closing was taking place between 21 and 60 days…
Float if my closing was taking place over 60 days from now.

This is only a general opinion of what I would do if I were considering whether to lock or float a Massachusetts mortgage based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.

Copyright : Mortgage Commentary

Geof McLaughlin, better known as The Massachusetts Mortgage Broker, is a nationally acclaimed mortgage professional committed to educating and empowering consumers about all things mortgage through his popular Massachusetts Mortgage Broker blog.

Geof is a top loan originator for one of the country’s leading mortgage companies, Mortgage Master Inc, with a proven reputation of offering its clients the best Massachusetts mortgage rates and lowest closing costs. He can be reached directly at 508.656.0055 or at geof@MAMortgageBroker.com.

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Wednesday’s bond market has opened in negative territory again with the stock markets showing gains. The Dow is currently up 44 points while the Nasdaq has gained 10 points. The bond market is currently down 10/32, but we will likely see a slight improvement in this morning’s mortgage pricing due to strength in bonds late yesterday.

Today’s only relevant report is the Fed Beige Book at 2:00 PM ET. It details economic activity throughout the country by region. The Fed relies heavily on this data during their FOMC meetings, so look for a potential reaction during afternoon trading. It probably will not cause a major sell off in the stock or bond markets, but could cause enough movement in bond prices to possibly improve or worsen Massachusetts mortgage rates slightly if it reveals any significant surprises.

There are two reports scheduled for release tomorrow morning. The first is the revised Productivity index for the 4th Quarter of last year. The preliminary reading posted last month showed an annual rate of 6.2% increase in worker output. Analysts are expecting to see little change to the initial reading. Employee productivity is watched fairy closely because a higher level of output per hour is believed to mean that the economy can expand without inflation concerns.

January’s Factory Orders will be posted late tomorrow morning, which will give us another measurement of manufacturing sector strength. This data is similar to last week’s Durable Goods, except this report covers orders for both durable and non-durable goods. Current forecasts are calling for an increase in new orders of approximately 1.8%. A smaller than expected increase would be good news for the bond market and should lead to a small improvement in Massachusetts mortgage rates.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Lock if my closing was taking place within 7 days…
Lock if my closing was taking place between 8 and 20 days…
Lock if my closing was taking place between 21 and 60 days…
Float if my closing was taking place over 60 days from now.

This is only a general opinion of what I would do if I were considering whether to lock or float a Massachusetts mortgage based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.

Copyright : Mortgage Commentary

Geof McLaughlin, better known as The Massachusetts Mortgage Broker, is a nationally acclaimed mortgage professional committed to educating and empowering consumers about all things mortgage through his popular Massachusetts Mortgage Broker blog.

Geof is a top loan originator for one of the country’s leading mortgage companies, Mortgage Master Inc, with a proven reputation of offering its clients the best Massachusetts mortgage rates and lowest closing costs. He can be reached directly at 508.656.0055 or at geof@MAMortgageBroker.com.

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Tuesday’s bond market has opened in negative territory following early stock gains. The stock markets are extending yesterday’s gains with the Dow up 40 points while the Nasdaq has gained 11 points. The bond market is currently down 6/32, which will likely push this morning’s Massachusetts mortgage rates higher by approximately .250 of a discount point.

There is no relevant economic data scheduled for release today, leaving the stock markets to drive bond trading and mortgage rates today. If the stock markets extend their current gains, we may see bond prices fall and Massachusetts mortgage rates rise this afternoon. If they give back their early gains, bonds could move into positive ground, leading to downward revisions to mortgage pricing.

The Fed Beige Book will be posted at 2:00 PM ET tomorrow. There is no important data being posted during morning hours. The Beige Book details economic activity throughout the country by region. The Fed relies heavily on this data during their FOMC meetings, so look for a potential reaction during afternoon trading. It probably will not cause a major sell off in the stock or bond markets, but could cause enough movement in bond prices to possibly improve or worsen Massachusetts mortgage rates slightly if it reveals any significant surprises.

There are two reports scheduled for release Thursday that could affect mortgage rates. They are a quarterly productivity index and a measurement of manufacturing sector strength. Neither are considered highly important, but can influence bonds trading enough to affect mortgage rates.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Lock if my closing was taking place within 7 days…
Lock if my closing was taking place between 8 and 20 days…
Lock if my closing was taking place between 21 and 60 days…
Float if my closing was taking place over 60 days from now.

This is only a general opinion of what I would do if I were considering whether to lock or float a Massachusetts mortgage based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.

For detailed information on Massachusetts mortgage rates, check out my article, “Massachusetts Mortgage Rates Revealed – How Lenders Determine Mortgage Rates Every Day“.

Copyright : Mortgage Commentary

Geof McLaughlin, better known as The Massachusetts Mortgage Broker, is a nationally acclaimed mortgage professional committed to educating and empowering consumers about all things mortgage through his popular Massachusetts Mortgage Broker blog.

Geof is a top loan originator for one of the country’s leading mortgage companies, Mortgage Master Inc, with a proven reputation of offering its clients the best Massachusetts mortgage rates and lowest closing costs. He can be reached directly at 508.656.0055 or at geof@MAMortgageBroker.com.

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

This week brings us the release of six economic reports to be concerned with. Two of the reports are considered to be very important, but nearly all of the week’s releases have the potential to affect Massachusetts mortgage rates. With reports being posted each day except Tuesday, we will likely see a fairly active week in mortgage rates.

The week’s first data comes tomorrow morning with the release of two relevant reports. The first is January’s Personal Income ad Outlays data at 8:30 AM ET, which gives us an indication of consumer ability to spend and current spending habits. Current forecasts call for an increase in income of 0.4% while spending is expected to rise 0.4%. A larger than expected increase in spending would be bad news for the bond market and could drive Massachusetts mortgage rates higher. However, weaker than expected numbers should help push mortgage rates slightly lower tomorrow.

The Institute for Supply Management (ISM) will release their manufacturing index for February late tomorrow morning. This index measures manufacturer sentiment and can have a pretty large impact on the financial and mortgage markets if it varies from forecasts. It is expected to show a decline from January’s 58.4 to 57.8 this month. This is important because a reading above 50.0 means more surveyed manufacturers felt business improved during the month than those who felt it had worsened, meaning likely growth in the manufacturing sector. If we see a weaker than expected reading, the bond market could rally. But, a higher than forecasted reading could lead to major selling in bonds, causing Massachusetts mortgage rates to rise tomorrow morning.

The Fed Beige Book is the next report scheduled for release and it will be posted Wednesday afternoon. This report details economic activity throughout the country by region. The Fed relies heavily on this data during their FOMC meetings, so look for a potential reaction during afternoon trading Wednesday. It probably will not cause a major sell off in the stock or bond markets, but could cause enough movement in bond prices to possibly improve or worsen Massachusetts mortgage rates slightly if it reveals any significant surprises.

There are two reports scheduled for release Thursday morning. The first is the revised Productivity index for the 4th Quarter of last year. The preliminary reading posted last month showed an annual rate of 6.2% increase in worker output. Analysts are expecting to see no change to the initial reading. Employee productivity is watched fairy closely because a higher level of output per hour is believed to mean that the economy can expand without inflation concerns.

January’s Factory Orders will be posted late Thursday morning, which will give us another measurement of manufacturing sector strength. This data is similar to last week’s Durable Goods, except this report covers orders for both durable and non-durable goods. Current forecasts are calling for an increase in new orders of approximately 1.2%. A smaller than expected rise would be good news for the bond market and could lead to an improvement in Massachusetts mortgage rates.

The biggest news of the week comes Friday morning when one of the single most important monthly reports we see will be posted. The Labor Department will release February’s Employment report at 8:30 AM ET Friday. Some of the important portions of the report will give us the unemployment rate, number of new jobs added or lost and the average hourly earnings reading. The best combination for the bond market and Massachusetts mortgage rates would be an increase in the unemployment rate, a large drop in payrolls and little or no increase in earnings. Current forecasts are calling for 0.1% increase in the unemployment rate to 9.8% and approximately 20,000 jobs lost during the month.

Overall, look for a fairly active week for Massachusetts mortgage rates. Friday is undoubtedly the biggest day of the week, but tomorrow may also bring noticeable movement in mortgage rates. It is fairly safe to label Tuesday the least important with no relevant data scheduled for release, but we may see movement in rates several days this week.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Lock if my closing was taking place within 7 days…
Lock if my closing was taking place between 8 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….

This is only a general opinion of what I would do if I were considering whether to lock or float a Massachusetts mortgage based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.

For detailed information on Massachusetts mortgage rates, check out my article, “Massachusetts Mortgage Rates Revealed – How Lenders Determine Mortgage Rates Every Day“.

Copyright : Mortgage Commentary

Geof McLaughlin, better known as The Massachusetts Mortgage Broker, is a nationally acclaimed mortgage professional committed to educating and empowering consumers about all things mortgage through his popular Massachusetts Mortgage Broker blog.

Geof is a top loan originator for one of the country’s leading mortgage companies, Mortgage Master Inc, with a proven reputation of offering its clients the best Massachusetts mortgage rates and lowest closing costs. He can be reached directly at 508.656.0055 or at geof@MAMortgageBroker.com.

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Friday’s bond market has opened up slightly despite an upward revision to the 4th Quarter GDP reading. The stock markets are in negative ground with the Dow down 26 points and the Nasdaq down 3 points. The bond market is currently up 3/32, but I don’t think we will see much of a change in this morning’s Massachusetts mortgage rates, possibly a slight improvement.

This morning’s GDP revision for the 4th quarter came in a little higher or stronger than last month’s previous estimate of 5.7%. Today’s release showed a 5.9% rate of growth, meaning economic activity was stronger than many had thought. This headline number is bad news for bonds and Massachusetts mortgage rates because a strengthening economy raises inflation concerns and make bonds less appealing to investors. However, a relatively important inflation reading within the data was revised lower than previously thought. That has helped to keep bonds in positive ground during early trading.

The second report of the morning came from the University of Michigan who updated their Index of Consumer Sentiment for February. They announced a reading of 73.6 that was close to forecasts. It is a slight decline from the previous estimate but I don’t believe this small change will affect mortgage pricing today.

Also posted this morning was January’s Existing Home Sales data from the National Association of Realtors. They reported a 7.2% decline in home resales last month when a small increase was expected. This dropped sales to their lowest level since last summer, indicating that the housing sector still has some hurdles to tackle. This can be considered favorable news for bonds, but the data usually does not heavily influence trading or Massachusetts mortgage rates.

Next week is looking to be pretty active with several important economic reports scheduled for release. There is relevant data being posted four out of the five days, with a couple of them having multiple releases scheduled. Monday does bring us the release of some important data with January’s Personal Income and Outlays report and February’s ISM manufacturing index both scheduled. Income and spending are bother expected to rise, but the ISM index is likely to show that manufacturer sentiment slipped this month. Look for more details on next week’s events in Sunday’s weekly preview.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Lock if my closing was taking place within 7 days…
Lock if my closing was taking place between 8 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.

This is only a general opinion of what I would do if I were considering whether to lock or float a Massachusetts mortgage based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.

For detailed information on Massachusetts mortgage rates, check out my article, “Massachusetts Mortgage Rates Revealed – How Lenders Determine Mortgage Rates Every Day“.

Copyright : Mortgage Commentary

Geof McLaughlin, better known as The Massachusetts Mortgage Broker, is a nationally acclaimed mortgage professional committed to educating and empowering consumers about all things mortgage through his popular Massachusetts Mortgage Broker blog.

Geof is a top loan originator for one of the country’s leading mortgage companies, Mortgage Master Inc, with a proven reputation of offering its clients the best Massachusetts mortgage rates and lowest closing costs. He can be reached directly at 508.656.0055 or at geof@MAMortgageBroker.com.