Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Monday’s bond market has opened in negative territory following early stock strength. The stock markets opened the week with strong gains after news from China about their currency that was taken as extremely favorable for the international markets. The U.S. stock markets are following overseas strength with the Dow up 101 points and the Nasdaq up 14 points. These gains in stocks have pushed the bond market down 15/32, but we should still see an improvement in this morning’s Massachusetts mortgage rates of approximately .125 of a discount point over Friday’s morning rates due to strength late Friday.
There is no relevant economic news scheduled for release today, allowing the stock markets to heavily influence bond trading and Massachusetts mortgage rates. There are five economic reports scheduled for release the rest of the week in addition to another Federal Open Market Committee (FOMC) meeting and two Treasury auctions that may affect mortgage rates.
Tomorrow brings us the first data with the release of May’s Existing Home Sales report. The National Association of Realtors will give us figures on home resales late tomorrow morning. This data helps us measure housing sector strength and mortgage credit demand, but it usually takes a large variance from forecasts for it to cause a noticeable change to Massachusetts mortgage rates. It is expected to show an increase in sales from April to May.
Overall, it appears today may not be the quietest day of the week after all. We will likely see more volatility this week, particularly Wednesday afternoon when the first relevant Treasury auction is finished and the FOMC meeting adjourns. The same goes for Thursday with the week’s most important data being released during morning hours and the 7-year Note auction results are posted early afternoon. So, while today is an active day for Massachusetts mortgage rates, it probably will not be the only one this week. Proceeding with caution would be a wise move 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…
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.
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.
Comments Closed