Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Monday’s bond market has opened in positive territory as stocks react negatively to the healthcare bill and concerns about Greece again. The stock markets have opened slightly in negative ground with the Dow currently down 14 points and the Nasdaq down 3 points. The bond market is currently up 6/32, which will likely improve this morning’s Massachusetts mortgage rates by approximately .125 of a discount point.
There is no relevant economic data being posted today. The rest of the week brings us the release of five monthly and quarterly reports for the bond market to digest along with two relevant Treasury auctions, but today’s bond trading will likely be left up to the stock markets. If the major stock indexes fall from current levels, we should see more funds shifted into bonds and Massachusetts mortgage rates move lower later today.
The first data is February’s Existing Home Sales from the National Association of Realtors at 10:00 AM ET tomorrow. It will give us a measurement of housing sector strength and mortgage credit demand, but is usually considered to be of low importance to the financial markets. Its’ sister report- February’s New Home Sales, will be posted Wednesday morning. Since it is the day’s only data, it may influence bond trading enough to cause a slight change in Massachusetts mortgage rates, but it will take a large variance from forecasts for it to heavily influence rates. Current forecasts have tomorrow’s report showing a small decline in sales and Wednesday’s data showing a minor increase in sales.
Wednesday’s important data comes from the Commerce Department, who will post February’s Durable Goods Orders. This report gives us a measurement of manufacturing sector strength by tracking new orders for big-ticket items, or products that are expected to last three or more years. This data is known to be volatile from month to month but is still considered to be of high importance. Analysts are expecting it to show an increase in new orders of approximately 0.5%. A larger increase would be considered negative for bonds as it would indicate economic strength and could lead to higher Massachusetts mortgage rates Wednesday morning.
Overall, it is difficult to label one particular day as the most important of the week. The single most important report will likely be the Durable Goods Orders, but none of the week’s data has the potential to be a major market mover. If the stock markets move lower, we should see gains in bonds and improvements in Massachusetts mortgage rates. But, if stocks move higher, pressure in bonds is possible, leading to higher mortgage pricing. I suspect that this week will be a little calmer for mortgage rates than the past couple weeks have been, but I still recommend proceeding with caution if you are 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…
Float 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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