Mortgage Commentary on Massachusetts Mortgage Rate Trends
Subscribe here to have Massachusetts mortgage rates updates delivered to your inbox automatically.
Friday’s bond market has opened in positive territory following early stock losses. The stock markets are reacting negatively to rumors about a potential credit downgrade of multiple European countries that would threaten the global economy. The Dow is currently down 145 points while the Nasdaq has lost 30 points. The bond market is currently up 19/32, which should improve this morning’s Massachusetts mortgage rates by approximately .125 – .250 of a discount point.
There were two economic reports posted this morning. The first came at 8:30 AM ET when November’s Goods and Services Trade Balance report was released. It revealed a much larger than expected trade deficit of $47.8 billion. However, the data did not draw any attention and has not influenced this morning’s Massachusetts mortgage rates.
Late this morning, we saw the preliminary reading to the University of Michigan’s Index of Consumer Sentiment for January. It showed a reading of 74.0 that was also well above forecasts. This means that surveyed consumers were more optimistic about their own financial situations than many had thought. This is clearly negative news for the bond market and Massachusetts mortgage rates because rising confidence usually translates into higher levels of consumer spending and economic growth. Fortunately, the sizable stock losses are taking center stage this morning.
Next week has a handful of economic reports scheduled that may influence Massachusetts mortgage rates, including two key inflation indexes. The financial markets will be closed Monday in observance of the Martin Luther King holiday and will reopen Tuesday morning. The markets will be open for a full day of trading today (no early close ahead of the holiday). We will post our weekly preview Sunday evening but will not update our daily report Monday since the markets are closed and most mortgage lenders will follow suit.
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…
Float if my closing was taking place between 8 and 20 days…
Float 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.
Copyright : Mortgage Commentary
Comments Closed