Mortgage Commentary on Massachusetts Mortgage Rate Trends
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Wednesday’s bond market has opened in negative territory following a rebound in stocks. The stock markets are recovering a good part of yesterday’s losses with the Dow up 167 points and the Nasdaq up 28 points. The bond market is currently down 17/32, which will likely erase approximately .250 of yesterday’s improvements to Massachusetts mortgage rates.
There is no important governmental economic data scheduled for release today. The private sector employment-related reports that were posted this morning showed results that can be considered good for stocks and negative for bonds. However, they didn’t have much influence in this morning’s Massachusetts mortgage rates as the markets are anxiously awaiting this afternoon’s events.
The FOMC meeting that began yesterday will adjourn at 12:30 PM ET today. There is no possibility of the Fed changing key short-term interest rates at this time, but market participants will be looking at the post-meeting statement for any indication of when the Fed may make a move, particularly to help boost economic activity. This is especially true following recent concerns about the global economy. The adjournment time is different than most of the meetings, so any reaction to the statement will come during EARLY afternoon hours rather than the traditional middle afternoon period. The markets will actually be looking for news of another round of debt purchases by the Fed. If they do announce a sizable purchase program of government or mortgage debt, we could see the bond market rally and Massachusetts mortgage rates move noticeably lower later today.
The 12:30 PM meeting adjournment allows for a press conference at 2:15 PM ET, hosted by Fed Chairman Bernanke. We will answer questions about the Fed’s action (or lack of) and take questions from the press. These scheduled press conferences are new and just started this year in an effort to keep the public current on the Fed’s thoughts and concerns. Since the minutes to the meetings aren’t released for a couple weeks after the FOMC meetings, these press conferences allow the press to interact directly with the Fed and in a much more timely manner. Therefore, expect the markets and Massachusetts mortgage rates to react to his comments and any surprise answers during the Q&A portion.
Look for an update to this report shortly after the markets and Massachusetts mortgage rates have had an opportunity to react to Chairman Bernanke’s words. There is relevant economic data being released tomorrow morning, but we will address it in today’s afternoon update.
Lock or Float Advice based on Massachusetts Mortgage Rate Trends
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 based on Massachusetts mortgage rate trends. Your individual situation may be different.
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