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 due significant stock selling. The stock markets are posting large losses with the Dow down 220 points and the Nasdaq down 74 points. This has helped boost bond prices, pushing the bond market up 14/32, which will likely improve this morning’s Massachusetts mortgage rates by approximately .250 of a discount point.
Today’s only relevant economic news actually gave us unfavorable results. It showed that March’s Factory Orders rose 1.3%, greatly exceeding analysts’ forecasts. That indicates that the manufacturing sector was stronger than expected and can be considered bad news for bonds. However, the data is pretty much being ignored this morning as bonds have become a safe-haven from the volatility in stocks. If this continues into afternoon hours, I would not be surprised to see a downward revision to Massachusetts mortgage rates later today.
There is no relevant data scheduled fro release tomorrow, so look for the stock markets to again be a heavy influence on bond trading and Massachusetts mortgage rates. If today’s selling in stocks extends to tomorrow, we could see further improvements to mortgage rates. But if the major stock indexes rebound tomorrow, today’s improvements to rates may be erased.
The Labor Department will release its 1st Quarter Productivity and Costs data early Thursday morning. This information helps us measure employee productivity in the workplace. High levels of productivity help allow low-inflationary economic growth. If employee productivity is rapidly rising, the bond market should react favorably. However, a decrease could cause bond prices to drop and Massachusetts mortgage rates to rise Thursday morning. It is expected to show a 2.4% increase in productivity.
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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