Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Friday’s bond market initially opened in negative territory but has since moved into positive ground. The stock markets are mixed with the Dow up 18 points and the Nasdaq down 2 points. The bond market is currently up 2/32, but we will still see a slight increase in this morning’s Massachusetts mortgage rates of approximately .125 – .250 of a discount point.
This morning’s big news was February’s Retail Sales data from the Commerce Department. It showed a 0.3% increase in sales when a small decline was expected. Even if more volatile auto sales are excluded, sales exceeded forecasts by a wide margin. This led to the negative open in bonds and this morning’s increase in Massachusetts mortgage rates because the data indicates consumers were spending more than thought. That raises expectations of economic growth that usually makes bonds and long-term securities less appealing to investors.
The second report of the morning came from the University of Michigan who said their Index of Consumer Sentiment stood at 72.5 this month. This was lower than forecasts and means surveyed consumers were less optimistic about their own financial situations than many had thought. This is the good news of the morning for Massachusetts mortgage rates because waning confidence usually means consumers are less likely to make a large purchase in the near future.
Next week will be fairly busy in terms of economic releases and events that may influence Massachusetts mortgage rates, particularly the middle days. There is nothing of relevance scheduled for Monday, but between Tuesday and Thursday we have a handful of economic releases, including two important inflation readings and another FOMC meeting. Look for 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…
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.
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