Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Thursday’s bond market has opened in positive ground following significant stock weakness and favorable economic data. The Dow is currently down 172 points while the Nasdaq has fallen 40 points. The bond market is currently up 13/32, but we may not see much of an improvement in Massachusetts mortgage rates due to weakness late yesterday.
The Labor Department gave us last week’s unemployment figures. They reported that 500,000 new claims for unemployment benefits were filed last week. This was well above forecasts, indicating that the employment sector is weakening and not improving. That is good news for the bond market because a broader economic recovery will be extremely difficult if the employment sector is softening. It also means consumers have less money to spend and less likely to spend what they do have. This data usually has little influence on Massachusetts mortgage rates, but today’s surprise spike touched a very important threshold of 500,000. That raises more concerns about the economy, making bonds more attractive.
Late this morning, the Conference Board said that their Leading Economic Indicators (LEI) rose 0.1% in July. This was a smaller increase than was expected, meaning economic activity may not grow as much as many had thought over the next several months. That is also good news for bonds and Massachusetts mortgage rates because the weaker the economy, the better long-term securities such as mortgage-related bonds look to investors.
There is nothing of relevance scheduled for tomorrow, so it is fairly safe to say that the stock markets will probably affect bond trading and Massachusetts mortgage rates more than anything else. If stocks move higher, bonds will likely weaken, leading to slightly higher mortgage rates. However, stock selling could translate into higher mortgage pricing.
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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