Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Tuesday’s bond market has opened in positive territory despite the same for stocks and slightly stronger than expected economic data. The stock markets are posting small gains with the Dow up 19 points and the Nasdaq up 8 points. The bond market is currently up 5/32, which should improve this morning’s Massachusetts mortgage rates by approximately .125 of a discount point.
February’s Housing Starts was this morning’s only relevant economic data. The Commerce Department reported that construction starts of new homes fell 5.9% last month. The decline can be considered good news for the bond market, but analysts were expecting a slightly larger drop. Also, this data is not considered to be greatly important to the markets or Massachusetts mortgage rates, so its impact on today’s trading has been minimal.
Today’s FOMC meeting will adjourn at 2:00 PM ET. It is widely believed that the Fed will make no change to key short-term interest rates at this meeting, but the post-meeting statement will be watched closely for any indication of when they will make a move. Generally speaking, the bond market wants to hear that inflation is not an immediate concern and that key rates will be kept at current levels for the near future. If the statement reassures traders that the Fed will not be raising rates anytime soon, we can expected the bond market to thrive and Massachusetts mortgage rates to move lower. However, any hint of a move sooner than later could lead to bond selling and higher mortgage rates this afternoon.
Look for an update to this report shortly after the markets have an opportunity to react to the meeting’s results.
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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