Mortgage Commentary on Massachusetts Mortgage Rate Trends
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Friday’s bond market has opened in negative territory as the volatility in stocks seems to have calmed for the moment. The stock markets are showing losses, but they are minor compared to the past few days. The Dow is currently down 47 points while the Nasdaq has slipped 1 point. The bond market is currently down 10/32, which will likely erase approximately .250 of a discount point from yesterday’s gains in Massachusetts mortgage rates.
There is no relevant economic data to be posted today. This leaves the bond market to the mercy of stocks for the remainder of the day. If the major stock indexes start to slide further into negative ground, we may see bonds recover some of their early losses. On the other hand, if stocks are able to rebound into positive territory, bonds will likely move lower and Massachusetts mortgage rates could revise higher this afternoon.
We also could see some profit-taking in bonds as traders look to book some of their profits from the recent rally. There is also some concern about just how much lower the yield on the benchmark 10-year Treasury Note can fall in the immediate future (currently at 1.75%), so capturing some profits is the prudent move for traders. This means that we could see some pressure in bonds as the day progresses and raises the possibility of seeing Massachusetts mortgage rates move higher intra-day or Monday morning.
Next week has a handful of relevant economic reports scheduled for release in addition to two Treasury auctions that may influence Massachusetts mortgage rates. There is economic news coming Monday when August’s New Home Sales report is released, but it is considered to be of low importance to the bond market compared to some other reports. Therefore, it usually has little impact on mortgage rates unless it shows a significant jump or decline in sales of newly constructed homes. Look for details on this release and the rest of next week’s activities in Sunday’s weekly preview.
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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