Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Monday’s bond market has opened down slightly following early stock gains. The stock markets are kicking the week off with the Dow up 52 points and the Nasdaq up 6 points. The bond market is currently down 4/32, which should push this morning’s Massachusetts mortgage rates higher by approximately .125 of a discount point.
There is no relevant economic data scheduled to be posted today. This leaves me to believe that the stock markets will be the biggest influence on bond trading and any potential changes to mortgage pricing this afternoon. If the stock markets extend their gains, we may see bond prices drop and Massachusetts mortgage rates move higher later today.
The rest of the week brings us the release of five relevant pieces of economic data for the bond market to watch in addition to two relatively important Treasury auctions. The first comes late tomorrow morning when the National Association of Realtors posts July’s Existing Home Sales results. This data gives us a measurement of housing sector strength. It covers approximately 85% of home sales in the U.S., but usually does not have a major influence on bond trading and Massachusetts mortgage rates unless it varies greatly from analysts’ forecasts. It is expected to show a decline from June’s sales, meaning the housing sector is still softening. This would be good news for the bond market and Massachusetts mortgage rates because a weak housing sector makes a broader economic recovery difficult.
Overall, we will likely see the most activity in rates tomorrow morning, but Wednesday and Friday are also fairly important. If we manage to get weaker than expected results in the key reports and the auctions go well, we should see Massachusetts mortgage rates close the week lower than today’s opening levels. But stronger than expected results in the economic reports and disappointing results in the Treasury sales will most likely lead to rates moving higher this week.
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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