Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Monday’s bond market has opened in positive territory after this morning’s economic data gave us mixed results. The stock markets are showing minor losses with the Dow down 15 points and the Nasdaq down 11 points. The bond market is currently up 16/32, which should improve this morning’s Massachusetts mortgage rates by approximately .250 of a discount point over Friday’s morning rates.
This morning did bring us a relatively important economic report with the release of May’s Personal Income and Outlays data. It showed that personal income rose 0.4% while spending rose 0.2%. The income increase was weaker than expected and can be considered good news for bonds. The spending reading was slightly above forecasts, meaning consumers spend more than thought. This is negative for bonds and Massachusetts mortgage rates, but traders are ignoring that portion of the data this morning.
Tomorrow’s important data is June’s Consumer Confidence Index (CCI). It is important to the financial markets because it measures consumer willingness to spend. If consumers are more confident about their own financial situations, they are likely more apt to make large purchases in the near future. If it shows a sizable increase in confidence from last month, we can expect to see the bond market falter and Massachusetts mortgage rates rise slightly. Current forecasts are calling for a reading of 62.0, down from last month’s 63.3 reading.
Overall, tomorrow and Thursday’s data should bring some volatility in trading and mortgage rates, but Friday’s Employment report is definitely the most important of the week. Its impact can single-handedly lead to an improvement or increase in Massachusetts mortgage rates for the week. Next Monday is when the Independence Day holiday will be recognized. There is no early close for the bond market Friday ahead of it, but it will probably be a light afternoon in trading as traders head home for the long weekend. This could lead to additional volatility during morning trading, particularly with the Employment report being posted. So, I strongly recommend that you maintain contact with your mortgage professional 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…
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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