Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Wednesday’s bond market has opened in positive territory with the stock markets mixed during morning trading. The Dow is posting a loss of approximately 20 points while the Nasdaq is up 3 points. The bond market is currently up 7/32, which should improve this morning’s Massachusetts mortgage rates by approximately .125 of a discount point.
There is no relevant economic data scheduled for release today. This leaves the bond market and mortgage pricing to the influence of the stock markets. If the major stock indexes move lower this afternoon, the bond market should improve and mortgage pricing could improve. But, if stock markets improve noticeably from current levels, we may see an upward revision to Massachusetts mortgage rates later today.
Last week’s unemployment figures will be released early tomorrow morning. The Labor Department is expected to say that 475,000 new claims for unemployment benefits were filed last week. Since this report tracks only a single week’s worth of new claims, its impact on the markets and Massachusetts mortgage rates is usually minimal. The higher number of claims the better the news will be for bonds. However, it will likely take a wide variance from forecasts to see this data affect mortgage rates tomorrow.
The Conference Board will give us its Leading Economic Indicators (LEI) for July late tomorrow morning. This index attempts to measure economic activity over the next three to six months and is considered to be moderately important. A higher than expected reading is bad news for the bond market because it indicates that the economy may be strengthening more than thought. However, a weaker than expected reading means that the economy may not grow as much as predicted, making stocks less appealing to investors. This also eases inflation concerns in the bond market and could lead to slightly lower Massachusetts mortgage rates. It is expected to show an increase of 0.2 % in the index, indicating minor economic growth over the next couple of months.
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.
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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