Mortgage Commentary on Massachusetts Mortgage Rate Trends
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Friday’s bond market has opened in negative territory following early stock strength and mixed economic data. The major stock indexes are showing gains with the Dow up 40 points and the Nasdaq up 3 points. The bond market is currently down 19/32, which will likely push this morning’s Massachusetts mortgage rates higher by approximately .250 of a discount point.
The first of today’s three economic reports showed that both personal income and spending rose 0.1% last month, falling short of forecasts. Analysts were expecting to see 0.2% and 0.3% increases, respectively. This means that consumers had less money to spend last month and actually spent less than many had thought, making the data bad news for stocks and good news for the bond market and Massachusetts mortgage rates.
November’s Durable Goods Orders was the second release of the morning, revealing a larger than expected 3.8% jump in new orders for big-ticket products. This was nearly twice the increase that was expected, but this data is known to be quite volatile. The reading that excludes higher priced and more volatile transportation-related orders rose 0.3%, matching forecasts. Still, the data points towards manufacturing sector strength that makes bonds less appealing, leading to higher Massachusetts mortgage rates.
The last report of the week was November’s New Home Sales data that showed a small increase in sales of newly constructed homes. This was expected and didn’t draw much attention in the market or this morning’s Massachusetts mortgage pricing.
Ahead of this weekend’s Christmas Holiday, the bond market will close at 2:00 PM ET today. The stock markets will be open for a full day of trading, but it will undoubtedly be with very light volume. All of the key financial markets and U.S. banks will be closed Monday in observance of the holiday, reopening Tuesday morning. The rest of the week is pretty light in terms of economic releases that affect Massachusetts mortgage rates.
PLEASE NOTE: Due to the holiday falling on Sunday and Monday being a day that we would not normally post a daily update to this report (markets and banks are closed), we will NOT be posting our weekly preview Sunday evening. Our weekly report will be posted Monday morning and we will begin the week’s daily updates Tuesday morning.
We also would like to take this opportunity to wish you and yours a safe and wonderful holiday weekend!
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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