Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Friday’s bond market has opened in positive territory after this morning’s major economic news failed to reveal any significant surprises and overseas news from China has the stock markets in selling mode. The major stock indexes are showing sizable losses with the Dow down 128 points and the Nasdaq down 17 points. The bond market is currently up 10/32, which will likely improve this morning’s Massachusetts mortgage rates by approximately .125 – .250 of a discount point.
The Commerce Department reported early this morning that retail level sales rose 0.5% last month. This matched forecasts for the most part, meaning consumers spent no more than was thought. That is relatively good news for the bond market and mortgage rates because consumer spending fuels economic growth. Today’s report did revise December’s sales 0.2% better than previously thought, but it appears that news has not influenced trading or mortgage pricing.
February’s preliminary reading to the University of Michigan Index of Consumer Sentiment revealed a reading of 73.7. This was a decline from January’s reading and lower than forecasts were calling for. This means that consumers are less optimistic about their own financial situations this month than many had thought. That is considered good news for the bond market and Massachusetts mortgage rates because waning consumer confidence usually translates into weaker levels of consumer spending.
Yesterday’s 30-year Bond sale also was met with a lackluster interest from investors. This was no surprise and neither was the minimal reaction to the results once they were posted yesterday afternoon. Mortgage rates were not affected by the results of the sale yesterday.
Next week has several relevant economic reports scheduled, including two key inflation readings. Others include a couple of housing reports and a measurement of industrial output.
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.
For detailed information on Massachusetts mortgage rates, check out my article, “Massachusetts Mortgage Rates Revealed – How Lenders Determine Mortgage Rates Every Day“.
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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