Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Monday’s bond market has opened flat despite stronger than expected economic data and stock gains. The stock markets are starting the week in positive ground with the Dow up 60 points and the Nasdaq up 13 points. The bond market is currently unchanged from Friday’s level, but we will probably see a slight increase in this morning’s Massachusetts mortgage rates as a result of weakness late Friday.
June’s New Home Sales was today’s only relevant economic news posted this morning. The Commerce Department said late this morning that sales of newly constructed homes rose last month by more than analysts had expected. However, this data is not important enough to cause noticeable movement in the markets or Massachusetts mortgage rates.
The rest of the week brings us six more economic reports and a couple of Treasury auctions that may influence mortgage rates. Today’s data was one of the least important of the week and there is no relevant data being posted Thursday. This means that we have six relevant reports for the markets to digest over only three days, which should translate into an active week for Massachusetts mortgage rates.
The Conference Board will post their Consumer Confidence Index (CCI) for July late tomorrow morning. This index measures consumer sentiment, giving us an idea of consumer willingness to spend. If consumers are confident in their own financial situations, they are more apt to make large purchases in the near future. This is important because consumer spending makes up two-thirds of the U.S. economy. If the CCI reading is weaker than expected, meaning that consumers were less confident than thought, we may see bond prices rise and Massachusetts mortgage rates drop Tuesday. Current forecasts are calling for a reading of 51.0, which would be a lower reading than June’s and indicate consumers are becoming less comfortable with their finances.
Overall, I am expecting a fairly active week in the mortgage market. With several important economic reports on tap, we will likely see noticeable movement in mortgage rates more than one day. The most important report of the week is Friday’s preliminary GDP reading, making it one of the most important days of the week. But it is difficult to say which day we can expect to see the most movement in rates as several of releases and scheduled events have the potential to influence Massachusetts mortgage rates.
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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