Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Tuesday’s bond market has opened well in positive territory following a surprising drop in consumer confidence and significant losses in stocks. The stock markets are reacting negatively to the economic data and concerns about the global economy. This has pushed the Dow down 280 points and the Nasdaq down 76 points. The bond market is currently up 15/32, which will likely improve this morning’s Massachusetts mortgage rates by approximately .250 of a discount point.
June’s Consumer Confidence Index (CCI) was posted late this morning, revealing a reading of 52.9. This was far short of the 62.0 that was expected and indicates that consumers were much less optimistic about their own financial situations than many had thought. This is very good for Massachusetts mortgage rates because declining confidence usually means consumers are less likely to make large purchases in the near future. That limits economic growth because consumer spending makes up two-thirds of the U.S. economy.
There is no relevant economic data scheduled for release tomorrow, so look for the stock markets to influence bond trading and mortgage rates yet again. This morning’s rally has pushed the benchmark 10-year Treasury Note below 3.00% for the first time in quite a while. The question is whether it can hold below that level. If it remains below that threshold the next day or so, we could see more gains for bonds and even lower Massachusetts mortgage rates. But if the resistance is too strong, proving that 3.00% is a strong floor rather than a ceiling, mortgage rates would likely give back some of their recent improvements.
The next data scheduled this week comes late Thursday morning when the Institute of Supply Management (ISM) will release their manufacturing index for June. This important index measures manufacturer sentiment by surveying trade executives on current business conditions. A reading above 50 means that more surveyed executives felt business improved during the month than those who felt it had worsened. Analysts are expecting a reading of 59.0. That would indicate that manufacturers felt business worsened from the previous month, when we saw a 59.7 reading. Good news for bonds and Massachusetts mortgage rates would be a weaker than expected reading.
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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