Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Wednesday’s bond market has opened in negative territory despite early stock weakness. The stock markets are giving back some of the gains form the previous two days with the Dow down 45 points and the Nasdaq down 7 points. The bond market is currently down 8/32, which will likely push this morning’s Massachusetts mortgage rates higher by approximately .125 of a discount point.
The Institute for Supply Management released their services index late this morning, announcing a reading of 50.5. This was a little lower than expected, and as mentioned yesterday did not have an impact on this morning’s bond trading or mortgage rates.
There are a couple of relevant reports scheduled for release tomorrow. The first is Employee Productivity and Costs data for the 4th quarter will be released early tomorrow morning. It can cause some movement in the bond market, but should have a minimal impact on mortgage pricing. If it varies greatly from analysts’ forecasts of a 6.5% increase, we may see some movement in Massachusetts mortgage rates. However, the markets will be much more interested in Friday’s data.
Late tomorrow morning, December’s Factory Orders data will be posted. It is similar to last week’s Durable Goods Orders release in giving us a measurement of manufacturing sector strength, but this data includes new orders for both durable and non-durable goods. It is one of the less important reports of the week, but can influence mortgage pricing if it varies greatly from forecasts. It is expected to show a 0.5% increase in new orders.
The Labor Department will post last week’s unemployment figures tomorrow morning also, however, with January’s monthly figures coming Friday morning, this release will likely have less impact on rates than the minimal amount it usually does. Look for the other reports of the morning to have a bigger influence on bond trading and mortgage rates than the weekly unemployment figures.
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.
For detailed information on Massachusetts mortgage rates, check out my article, “Massachusetts Mortgage Rates Revealed – How Lenders Determine Mortgage Rates Every Day“.
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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