Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Friday’s bond market has opened in negative territory after this morning’s Employment report showed a sizable improvement in the labor market. The stock markets are closed today in observance of the Good Friday holiday, but the bond market will be open until noon ET. It is currently down 12/32, which will likely lead to an increase of approximately .250 of a discount point in this morning’s Massachusetts mortgage rates. However, many lenders may be closed today due to the holiday and will need to reflect this change in Monday’s pricing.
This morning’s data did show a significant improvement from February’s readings. But when compared to forecasts, this data should be considered favorable for Massachusetts mortgage rates. The report showed that the unemployment rate remained at 9.7% as it was expected to. The number of new jobs added to the economy during March totaled 162,000. This was short of the 184,000 that was expected after adjusting for an upward revision to February’s total. It should be safe to assume that the market was priced for those forecasts. In addition, nearly a third of the new jobs are thought to be only temporary Census workers and not permanent positions that can be relied on in the future.
So, we saw fewer jobs added than expected and the unemployment rate remained unchanged. This should be considered good news for Massachusetts mortgage rates, or at least neutral. I believe that the thin holiday trading is skewing the market’s reaction to the news. Many traders are home today for the holiday, leaving a skeleton staff at the office. The weak volume magnifies any selling that does take place. The result is a larger loss in bonds than we would likely see if the stock markets were open and full trading staffs were working today. We could see this corrected in Monday’s trading when stocks begin trading and traders return from the long weekend.
Next week is very light in terms of economic releases. There is very little factual data scheduled to be posted. The major events are the minutes from the most recent FOMC meeting and a couple of Treasury auctions. Look for more details on next week’s events in Sunday’s weekly preview and how their impact on 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…
Float 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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