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 following early stock strength. The stock markets are starting the week in positive ground after Greece accepted a bailout package that should help stabilize the country’s financial system. The Dow is currently up 86 points while the Nasdaq has gained 14 points. The bond market is currently down 11/32, which will likely push this morning’s Massachusetts mortgage rates higher by approximately .125 – .250 of a discount point over Friday’s morning pricing.
There were two reports released this morning that were relevant to Massachusetts mortgage rates. The first was March’s Personal Income & Outlays that showed a 0.3% rise in income and a 0.6% increase in spending. Both of these readings matched forecasts, minimizing its impact on this morning’s bond trading and mortgage rates. February’s readings were revised higher than previously estimated, but due to the age of that data it also has not influenced today’s rates.
The second report of the day was one of the more important releases of the week. The Institute for Supply Management (ISM) posted their manufacturing index for April late this morning, announcing a reading of 60.4. This was slightly lower than forecasts but an increase from the previous month. This indicates that more surveyed manufacturers felt business improved during the month than last month. That can be considered negative for Massachusetts mortgage rates, but since the reading did not exceed forecasts, its impact on the markets has been minimal.
March’s Factory Orders data will be released at 10:00AM tomorrow, giving us a measure of manufacturing sector strength. It is similar to last week’s Durable Goods Orders, except this report includes non-durable goods such as food and clothing. Generally, the market is more concerned with the durable goods orders like refrigerators and electronics than items such as cigarettes and toothpaste. This is why the Durable Goods report usually has more of an impact on the financial markets than the Factory Orders report does. Still, a larger decline than the 0.1% that is expected could push Massachusetts mortgage rates slightly lower. But, a sizable increase in new orders could lead to slightly higher mortgage pricing tomorrow.
Overall, I believe Friday will be the most important day of the week with the employment data being posted. It can easily erase the week’s accumulated gains or losses in Massachusetts mortgage rates if it shows any surprises. The middle part of the week will likely be the calmest, but I still suggest proceeding cautiously if still floating an interest rate. This would be a good week to maintain contact with your mortgage professional if you have not locked a rate yet.
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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