Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker
Friday’s bond market has opened in positive territory again as yesterday’s stock selling extends into this morning. The stock markets are showing much smaller losses than yesterday’s 376-point drop in the Dow but are still in the red, making bonds more appealing to investors. The bond market is currently up 13/32, but we will likely only see an improvement in this morning’s Massachusetts mortgage rates of approximately .125 of a discount point.
There is no relevant economic data being posted today, so any changes to Massachusetts mortgage rates will likely come from stock market movements. The bond market has staged a significant rally recently, but almost entirely due to stock losses that came as a result of global economic concerns. Even with the stock sell-off, I strongly believe the bond market is over-bought and is very likely to go through a correction once the stock markets stabilize. It is my opinion that the correction will come even of stock prices do not rebound. Just a stabilization of the major indexes will be enough to fuel profit-taking in the bond market and a spike in Massachusetts mortgage rates. Therefore, please be careful if still floating an interest rate, especially with a closing date more than a couple weeks away.
Next week is packed with economic releases for the markets to digest. Whether or not they will mean much to bond traders remains to be seen. If the stock selling continues into next week, the economic data may be ignored and bonds could benefit further. We may see slightly lower Massachusetts mortgage rates, however, with the benchmark 10-year Treasury Note now at 3.16% it is difficult to believe there is room for much more improvement.
There is relevant data scheduled for release each day next week, including Monday when April’s Existing Home Sales report will be posted by the National Association of Realtors. This report gives us a measurement of housing sector strength and mortgage credit demand. It is not considered to be one of the more important pieces of data that we see each month, so it usually takes a large variance between forecasts and its actual results for the report to affect Massachusetts mortgage rates. But with data being posted each day and an early close Friday, there is potential to having another active week for the markets and mortgage pricing. Look for more 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…
Lock 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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