Mortgage Commentary on Massachusetts Mortgage Rate Trends
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Friday’s bond market has opened in positive territory despite early stock strength and slightly unfavorable economic news. The stock markets are showing decent gains with the Dow up 88 points and the Nasdaq up 38 points. The bond market is currently up 7/32, but we will likely see little change in this morning’s Massachusetts mortgage rates.
This morning’s economic news came from the Labor Department, who reported that the Consumer Price Index (CPI) was unchanged last month and that the core reading rose 0.2%. Analysts were expecting to see a 0.1% increase in both readings, but since the core data is the more important of the two and it exceeded forecasts, we should consider this report slightly negative for the bond market and Massachusetts mortgage rates. It indicates that inflationary pressures were a little stronger than expected at the consumer level of the economy when volatile food and energy prices are excluded. It was not enough of a variance to raise much concern in the markets, but it hasn’t helped Massachusetts mortgage pricing this morning either.
As we wrap up a pretty active week for the markets, it appears stock traders are looking to close on a positive note. As long as the major stock indexes do not extend their current gains too much, I am expecting to see a fairly quiet day for Massachusetts mortgage rates. However, if stocks make a large move upward or downward, bond prices will likely move in the opposite direction, possibly causing a slight intra-day revision to Massachusetts mortgage pricing. As long as stocks remain calm, bonds and rate will likely follow suit.
Next week is pretty busy in terms of relevant economic reports scheduled for release. There are plenty of reports being posted, but most of them come the latter part of the week. There is nothing of relevance due out Monday, but every other day of the week has multiple reports or events that may influence Massachusetts mortgage rates. It is also a shortened week for the bond market with an early close Friday ahead of the Christmas holiday. Look for details on next week’s data and related events in Sunday’s weekly preview.
Lock or Float Advice based on Massachusetts Mortgage Rate Trends
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 based on Massachusetts mortgage rate trends. Your individual situation may be different.
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