Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
The first of this morning’s three economic reports was the most important of all of the week’s data. The 1st Quarter Gross Domestic Product (GDP) came in at an annual rate of growth of 3.2%. This was slightly below forecasts, meaning the economy grew at slower pace than thought during the first three months of the year. In addition, a key inflation reading within the data was just below forecasts also. These are fairly good results for the bond market and Massachusetts mortgage rates.
The second report was the 1st Quarter Employment Cost Index (ECI) that showed a 0.6% increase in employer costs for wages and benefits. This was just above the 0.5% increase that was expected, so this data can be considered negative for bonds. However, it was not enough of a variance to have much of an impact on this morning’s Massachusetts mortgage rates.
The last was the University of Michigan’s update to their Index of Consumer Sentiment for April. They announced a reading of 72.2, which exceeded forecasts of 71.0. This indicates that surveyed consumers were more confident about their own financial situations than thought, which is believed to mean they are more apt to make large purchases in the near future. Again, bad news for bonds and Massachusetts mortgage rates, but the most important data of the day was favorable for bonds and had led to this morning’s buying.
I would not be surprised to see further stock losses and bond gains before the day ends. It seems the momentum for bonds remains strong and that stocks could be due for another drop. If this is accurate, we could see funds shifted into bonds and Massachusetts mortgage rates move even lower. Accordingly, I am a little less cautious towards mortgage rates than I was earlier in the week.
Next week brings us the release of several relevant reports, including two important ones Monday morning. Early Monday we will get March’s Personal Income and Outlays data that will give us a measurement of consumer ability to spend and current spending habits. Later Monday morning, the Institute for Supply Management (ISM) will post their manufacturing index that tells us manufacturer sentiment about current business conditions. Both can move the bond market enough to affect Massachusetts mortgage rates, so Monday will be a busy day. Look for more details on next week’s events in Sunday’s weekly preview.
If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…
Float 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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