Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Tuesday’s bond market has opened strong following news of a surprising drop in consumer confidence. The stock markets are reacting negatively to the data with the Dow down 62 points and the Nasdaq down 28 points. The bond market is currently up 29/32, which should improve this morning’s Massachusetts mortgage rates by approximately .250 – .375 of a discount point.
The Conference Board gave us today’s important data with the release of February’s Consumer Confidence Index (CCI). They reported a reading of 46.0 that was well below forecasts of a 55.0 reading. This means that consumers were far less optimistic about their own financial situations than many had thought. This is very good news for the bond market and Massachusetts mortgage rates because waning levels of confidence usually translates into lower levels of consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, related data gets watched closely.
This morning’s data was great news for the mortgage market and has turned many heads. If this is the start of a period of declining confidence, analysts will become concerned about consumer spending, the housing market and overall economic growth. If consumers are concerned about losing their job or their general financial situation, they are less apt to purchase a new home or make other large purchases in the near future. This would limit economic expansion and threaten the recovery that is supposedly underway. However, let’s keep in mind that this is a single report that seems to be out of whack. Accordingly, I am still holding the concerned outlook for Massachusetts mortgage rates, at least for the time being. If we get further readings that support today’s data, that stance will certainly change.
January’s New Home Sales report will be posted late tomorrow morning. This is one of the least important reports of the week, and it is the sister report to Friday’Ms Existing Home Sales release. They measure housing sector strength and mortgage credit demand, but usually do not have a significant impact on bond trading or Massachusetts mortgage rates. They are both expected to show an increase in sales.
Fed Chairman Bernanke will deliver the Fed’s semi-annual testimony on the status of the economy late tomorrow and Thursday mornings. He will be speaking to the House Financial Services Committee tomorrow and the Senate Banking Committee Thursday. Market participants will watch the Fed Chairman’Ms words very closely. He is required to deliver this testimony twice a year, which is considered to be of extreme importance to the financial markets. We almost always see the markets move as a result of what he says during this testimony. Look for him to address the unemployment and housing crises specifically and their impact on the overall economy. His testimony begins at 10:00 AM ET with a prepared statement and then is followed by Q & A with committee members. I am expecting to see the markets fluctuate during this session, possibly affecting Massachusetts mortgage rates also.
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.
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