Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Monday’s bond market has opened flat as have the stock markets. The Dow is currently nearly unchanged from Friday’s close while the Nasdaq is up 7 points. The bond market is also unchanged, which should keep this morning’s Massachusetts mortgage rates at Friday’s levels.
There is no relevant economic data being posted today. In fact, this is the only day of the week that there is not a relevant report or event scheduled. We do have Alcoa’s quarterly earnings results today, but they will be posted after the markets close and should not affect the markets or Massachusetts mortgage rates until tomorrow’s trading.
The rest of the week brings us six important economic reports and several other events that may influence mortgage rates. Several of the economic reports are considered to be of high importance, meaning we will likely see volatility in the financial markets and Massachusetts mortgage rates over the next several days.
The first data of the week is May’s Goods and Services Trade Balance report early tomorrow morning, which measures the size of the U.S. trade deficit. This data is not considered to be of high importance to the bond market and will not likely have an impact on mortgage rates. However, if it does vary greatly from analysts’ forecasts of a $39.5 billion deficit, we may see some movement in bond prices and possibly a slight change in Massachusetts mortgage rates.
The first of the two important Treasury auctions will also take place tomorrow when 10-year Notes will be sold. That sale will be followed by a 30-year Bond auction Wednesday. These sales can influence market trading in bonds and possibly affect mortgage rates. If the sales are met with a strong demand from investors, particularly tomorrow’s sale, we should see afternoon improvements in bonds that could lead to downward revisions to Massachusetts mortgage rates. However, if concern about the amount of debt that is being sold keeps buyers on the sidelines, we may see bonds fall after results are posted at 1:00 PM ET and mortgage rates move higher those days.
Overall, it is difficult to try to label one particular day as the most important this week. It is easy to say the least important was today, but every other day has important data or other events that can cause significant movement in the markets and mortgage rates. The single most important report for the bond market is the CPI Friday morning, but the data on Wednesday and Thursday are not far behind. The week’s corporate earnings also have the potential to heavily influence bond trading and Massachusetts mortgage rates via stock market swings. Therefore, it is highly recommended to maintain fairly constant contact with your mortgage professional this week if still floating an interest rate.
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 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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