Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Monday’s bond market has opened down slightly following a positive open in stocks. The stock markets are showing minor gains with the Dow up 23 points and the Nasdaq up 7 points. The bond market is currently down 3/32, which should keep this morning’s Massachusetts mortgage rates at Friday’s morning levels.
There is no relevant economic data scheduled for release today, so look for the stock markets to be the biggest influence on the bond market and any potential changes to mortgage rates this afternoon. If the major stock indexes remain near current levels, Massachusetts mortgage rates should follow suit.
Tomorrow morning brings us the release of June’s Housing Starts. This data gives us an indication of housing sector strength, but is not considered to be of high importance. Analysts are currently expecting to see a decline in new home construction starts. However, I don’t see this data having much of an impact on Massachusetts mortgage rates unless it varies greatly from forecasts.
The rest of the week has only a couple of relevant economic reports scheduled in addition to Fed Chairman’s Bernanke’s semi-annual congressional update on the status of the economy and monetary policy. He will speak before the Senate Banking Committee Wednesday and the House Financial Services Committee Thursday mornings at 10:00am ET. His testimony will be broadcast and watched very closely. We usually see the most movement in rates during the first day of this testimony as the Chairman’s prepared words for both appearances are quite similar to each other, meaning that the second day of testimony rarely gives us anything we did not hear during the first day.
Overall, this is a moderately significant week for the bond market and Massachusetts mortgage rates. If we get weaker than expected economic results and Fed Chairman Bernanke’s words do not negatively surprise the markets, we may see mortgage rates move lower for the week. However, if Mr. Bernanke’s testimony raises concerns about rapid economic growth or inflation, rates may move higher on the week. I suspect we will see them move noticeably from current levels, which could be the base for more movement in the same direction over the next couple of weeks. Therefore, even though there is not a large number of relevant reports scheduled for release, don’t underestimate the importance of this particularly week. This is especially true if still floating an interest rate.
If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…
Float 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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