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 after this morning’s stock markets showed early gains. Stocks have continued to move higher, pushing the Dow up 89 points and the Nasdaq up 24 points. The bond market is currently down 8/32, which should push this morning’s Massachusetts mortgage rates higher by approximately .125 of a discount point.
There is economic data scheduled for release today that is relevant to Massachusetts mortgage rates. So, as expected, the stock markets are having the biggest influence on this morning’s bond trading and mortgage pricing. It appears that the major stock indexes have more room to improve, therefore, it would not surprise me to see another upward revision to mortgage rates later today.
Tomorrow brings us the release of three reports that may affect Massachusetts mortgage rates. The first is the revised 1st Quarter Productivity and Costs data that measures employee output and employer costs for wages and benefits. It is considered to be a measurement of wage inflation. It is believed that the economy can grow with low inflationary pressures when productivity is high. Last month’s preliminary reading revealed a 3.6% increase, but I don’t think this piece of data will have much of an impact on the bond market or mortgage pricing unless it varies greatly from its forecasted revised reading of 3.4%.
The second release of the day will come from the Commerce Department, who will post April’s Factory Orders data during late morning trading. This manufacturing sector report is similar to last week’s Durable Goods Orders release, but also includes orders for non-durable goods. It can cause some movement in the financial markets if it varies from forecasts by a wide margin, but it isn’t expected to cause much change in Massachusetts mortgage rates this month. Current forecasts are calling for an increase in orders of 1.7%.
The third report of the day may have a noticeable impact on the markets or be a non-factor depending on its results. The Institute for Supply Management will release its services index late tomorrow morning. It is expected to show a reading of 55.6, with the same principals as yesterday’s ISM manufacturing index. If this reading varies greatly from forecasts, we may see volatility in the markets and Massachusetts mortgage rates. However, if its results are in the general area of expectations, it will likely have no influence on the markets and mortgage pricing 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…
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.
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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