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.
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