Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Friday’s bond market has opened down slightly following mixed results from today’s important data. The stock markets initially opened flat but have since fallen well into negative ground with the Dow down 93 points and the Nasdaq down 17 points. The bond market is currently down 4/32, which should keep this morning’s Massachusetts mortgage rates at yesterday’s levels.
The Labor Department gave us today’s more important data with the release of June’s Employment report. It revealed a surprising 9.5% unemployment rate when it was expected to rise to 9.8%. The data showed that 125,000 jobs were lost during the month, which was close to forecasts of a decline of 100,000. It also said that average hourly earnings fell 0.1% when forecasts were calling for a slight increase. This will effect Massachusetts mortgage rates.
The drop in the unemployment rate can be considered negative for bonds, but analysts feel this decline was more to unemployed workers giving up on finding a job than it was more people working. The number of payrolls lost is fairly neutral as it was close to forecasts and the declining wages reading is good news for bonds because it eases any inflation concerns that may exist. So overall, the data has failed to either impress or concern the bond market or Massachusetts mortgage rates.
The Commerce Department released May’s Factory Orders data late this morning, announcing a 1.4% decline in new orders at U.S. factories. This was much weaker than expected but doesn’t carry the influence that some of the other monthly reports do. Therefore, its impact on this morning’s Massachusetts mortgage rates has been minimal.
Next week is very light in terms of relevant economic reports scheduled for release. There are no important Treasury auctions or other events scheduled that are likely to affect Massachusetts mortgage rates. The financial and mortgage markets will be closed Monday in observance of the Independence Day holiday and will reopen Tuesday morning. There is no early close for stocks or bonds today, but I suspect this afternoon’s trading will be light as traders head home for the long weekend. Look for more details on next week’s events in Sunday’s weekly preview.
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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