The first release of the week comes Wednesday afternoon. The Federal Reserve will release its Beige Book report at 2:00 PM ET Wednesday. This report details current economic conditions in the U.S. by Federal Reserve regions. It is believed to be a key source of data when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises, we may see movement in the markets and mortgage pricing as analysts adjust their theories on the Fed’s next move. Most likely though, it will be a non-event and will not lead to a noticeable change in Massachusetts mortgage rates.

Also Wednesday is a 10-year Treasury Note auction, which will be followed by a 30-year Bond auction Thursday. It is fairly common to see some weakness in bonds before these sales as investors prepare for them. If the sales are met with a decent demand from investors, indicating interest in longer-term securities such as mortgage-related bonds still exists, the earlier losses are usually recovered after the results are announced. The results of the sales will be posted at 1:00 PM ET each day. If demand was strong, particularly from international investors, we should see Massachusetts mortgage rates improve during afternoon trading Wednesday and Thursday.

July’s Goods and Services Trade Balance data will be posted early Thursday morning, giving us the size of the U.S. trade deficit. It is expected to show a deficit of approximately $47.2 billion, which would be a decline from June’s $49.9 billion. However, I would consider this the least important of this week’s events, meaning it will likely have little impact on bond trading or Massachusetts mortgage rates unless it varies greatly from forecasts.

Overall, this week looks like it will be much less active for Massachusetts mortgage rates than last week was. With the financial markets closed tomorrow, we only have four days of trading. There is no particular data that is important enough to label its day of release as the most important of the week. This may allow the stock markets to heavily influence bond trading and therefore, impact mortgage rates this week. As long as the stock markets do not stage a sizable rally or sell-off this week, the likelihood of seeing significant changes to Massachusetts mortgage rates is fairly minimal.

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…
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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This morning’s key economic data came from the Labor Department who gave us August’s Employment report. It showed that the U.S. unemployment report rose to 9.6% as expected. The bad news came in the other two primary readings that the markets follow. The data showed that only 54,000 jobs were lost last month when analysts were expecting to see a loss of 120,000. Also, the average hourly earnings reading rose 0.3% when forecasts called for a 0.1% increase.

The fewer job loss number indicates a stronger employment sector than many had thought. The stronger earnings also raises concern for the bond market because it gives consumers more money to spend. Therefore, this report was not good for bonds and Massachusetts mortgage rates and is the cause of this morning’s selling.

Next week brings us the release of little economic data to drive bond trading and Massachusetts mortgage rates. There are also a couple of relevant Treasury auctions schedule in addition to the Fed Beige Book. The financial markets will be closed Monday in observance of the Labor Day holiday and will reopen Tuesday morning. There are no important events on tap for Tuesday, but look for 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…
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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1. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Aug 24 2010 12:26PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
2. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 2 2010 12:26PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
3. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jun 6 2010 9:26PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...

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None of today’s three reports showed a surprise significant enough to affect Massachusetts mortgage rates. The revised 2nd Quarter Productivity reading revealed a 1.8% decline. This was slightly weaker than the 1.7% decline that was forecasted, but was not enough of a variance to affect bond trading or mortgage rates. The Labor Department reported that 472,000 new claims for unemployment benefits were filed last week when 475,000 were expected. As with the productivity reading, this was not enough of a difference to influence this morning’s mortgage pricing.

July’s Factory Orders report was released late this morning, showing a 0.1% increase in new orders for durable and non-durable goods. Analysts were expecting to see a 0.3% increase, so at first look this data can be considered good news for bonds and Massachusetts mortgage rates because it indicates weaker than expected manufacturing activity. However, a significant upward revision to June’s orders offset July’s news, creating a neutral impact on this morning’s trading.

The Labor Department will be in the spotlight tomorrow morning when they post July’s Employment report. It will give us the U.S. unemployment rate, number of new jobs added or lost and average hourly earnings for August. The ideal scenario for the bond market and Massachusetts mortgage rates are rising unemployment, a larger than expected drop in payrolls and earnings to remain unchanged. Analysts are expecting to see that the unemployment rate moved from 9.5% to 9.6% and that 120,000 jobs were lost during the month. Weaker then expected readings would be very good news for bonds and would likely lead to lower mortgage rates tomorrow. However, if we get stronger than expected numbers, Massachusetts mortgage rates will probably spike higher.

Tomorrow’s report is arguably the most important release that we see each month. The initial GDP reading can be considered the single most important overall, but it is posted quarterly. Therefore, we can expect to see some volatility in the markets and with Massachusetts mortgage rates after tomorrow’s release. This is especially true during early morning hours as traders make a knee-jerk reaction to its results. Add in the fact that the markets will be closed Monday in observance of the Labor Day holiday, which means that some traders may be heading home early tomorrow, and we have the potential for a very interesting day in the mortgage market. Therefore, proceed cautiously if still floating an interest rate.

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…
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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Wednesday’s bond market has opened down sharply after this morning’s economic data showed surprising strength. The stock markets are heavily influencing bond trading with significant gains. Stocks have had quite a strong reaction to this morning’s news, pushing the Dow up over 230 points and the Nasdaq up 57 points. The bond market is currently down 30/32, which will likely push this morning’s Massachusetts mortgage rates higher by approximately .250 of a discount point. Strength in bonds late yesterday is helping to prevent a larger increase to this morning’s rates.

Today’s news came from the Institute for Supply Management (ISM), who released their manufacturing index for August late this morning. They announced a reading of 56.3 that was not only well above forecasts, but also an increase from July’s reading. This means that manufacturer sentiment about business conditions was much stronger than analysts had expected. When this happens, bonds tend to move lower increasing Massachusetts mortgage rates while stocks move higher as it is a sign of economic strength.

Yesterday afternoon’s release of the minutes from the last FOMC meeting didn’t reveal any significant surprises, but did indicate that the Fed is considering, or at least willing to invest more funds into mortgage-related securities. That can be considered good news for bonds and Massachusetts mortgage rates since the additional buying should drive mortgage pricing lower. However, it is just a thought at this time and cannot be given much weight until the Fed does decide to pursue that route.

There are two reports scheduled for release tomorrow morning that have the potential to influence Massachusetts mortgage rates. The first is the revised 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without inflation concerns. It is expected to show a downward change from the previous estimate of a 0.9% decline. Forecasts are currently calling for a 1.7% drop, meaning productivity was weaker than previously thought. This would be negative news for the bond market and mortgage rates, but this data is not one of the more important reports we see each quarter. Therefore, unless there is a large variance from expectations, this report will likely have little impact on tomorrow’s Massachusetts mortgage rates.

July’s Factory Orders data will also be released tomorrow morning. This report measures manufacturing sector strength and is similar to last week’s Durable Goods Orders, but includes orders for both durable and non-durable goods. It is expected to show a 0.3% increase in new orders. A smaller than expected rise would be favorable for bonds, while a large than forecasted increase could lead to higher Massachusetts mortgage rates tomorrow morning.

Also worth noting are weekly unemployment figures that will be released by the Labor Department early tomorrow morning. They are expected to say that 475,000 new claims for unemployment benefits were filed last week. Since this data tracks only a single week’s worth of claims, it usually takes a fairly significant surprise for Massachusetts mortgage rates to react. This is especially true when monthly figures will be posted the following day, as is the case this week.

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…
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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August’s Consumer Confidence Index was posted late this morning. The Conference Board announced a reading of 53.5 that was an increase from last month’s reading and higher than analysts’ forecasts. That is considered bad news for the bond market and Massachusetts mortgage rates because it means consumers may be more apt to make large purchases in the near future, fueling economic growth.

Later today, the minutes from the last FOMC meeting will be posted. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member’s views on the economy and inflation and if they will hint what the Fed’s next move may be. But this is one of those events that can cause significant movement in Massachusetts mortgage rates after its release or be a non-factor. I suspect that this particular release will cause a little movement in bond prices, but not enough to significantly affect mortgage pricing.

Tomorrow’s only important news is the release of the Institute for Supply Management’s (ISM) manufacturing index at 10:00 AM ET. This index measures manufacturer sentiment and is expected to show 52.9, which would be a decline from last month’s reading of 55.5. A reading above 50 means that more surveyed manufacturers felt business improved during the month than those who felt it worsened. A larger than expected decline in the index would likely cause selling in the stock markets and lead to an improvement in Massachusetts mortgage rates tomorrow.

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…
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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1. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Feb 18 2010 1:00PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
2. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Mar 12 2010 12:00PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...

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Today’s only relevant economic data was July’s Personal Income and Outlays. It showed that personal income rose 0.2% while spending rose 0.4% last month. The income reading matched forecasts, but the increase in spending was a little higher than what analysts were expecting. Therefore, this data can be considered neutral to slightly negative for bonds and Massachusetts mortgage rates.

Tomorrow has two releases scheduled that may affect Massachusetts mortgage rates. The first is August’s Consumer Confidence Index from the Conference Board. This index measures consumer sentiment about their personal financial situations, giving us a measurement of consumer willingness to spend. That is important because consumer spending makes up two thirds of the U.S. economy. A decline in confidence would indicate that surveyed consumers probably will not make a large purchase in the immediate future. That sign of economic weakness should drive bond prices higher, leading to lower mortgage rates tomorrow morning. The 10:00 AM ET release is expected to show a reading of 50.0, which would be a small decline from July’s 50.4. The lower the reading, the better the news for bonds and mortgage pricing.

Also tomorrow is the release of the minutes from the last FOMC meeting. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member’s views on the economy and inflation and if they will hint what the Fed’s next move may be. But this is one of those events that can cause significant movement in Massachusetts mortgage rates after its release or be a non-factor. I suspect that this particular release will cause a little movement in bond prices, but not enough to significantly affect mortgage pricing.

Overall, I expect to see the most movement in Massachusetts mortgage rates Friday, but tomorrow and Wednesday should also be fairly active. Also worth mentioning though is the fact that next Monday is Labor Day so all markets will be closed. The bond market will not close early this Friday, but many traders may head home for the long weekend after Friday’s data is posted. This means that trading will likely be thin Friday afternoon even though the markets will still be open. This could lead to additional volatility in rates as traders prepare for the long weekend, so please be careful this week if still floating an interest rate.

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…
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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1. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Mar 29 2010 10:25AM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
2. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Aug 29 2010 3:55PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
3. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Feb 1 2010 12:25PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...

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There are six relevant economic reports scheduled for release this week in addition to the minutes from the most recent Fed monetary policy meeting. With at least one piece of data being posted each day this week, it is fairly safe to assume that we will see another active week in the financial and mortgage markets with volatile Massachusetts mortgage rates.

Unlike many Mondays, tomorrow does bring us one of those reports. July’s Personal Income and Outlays report will be released early tomorrow morning, giving us a measurement of consumer ability to spend and current spending habits. It is expected to show an increase of 0.2% in income and a 0.3% increase in spending. Weaker than expected numbers would be considered good news for the bond market and Massachusetts mortgage rates.

The Conference Board will post their Consumer Confidence Index (CCI) for August late Tuesday morning. This index measures consumer sentiment about their personal financial situations, giving us a measurement of consumer willingness to spend. That is important because consumer spending makes up two thirds of the U.S. economy. A decline in confidence would indicate that surveyed consumers probably will not make a large purchase in the immediate future. That sign of economic weakness should drive bond prices higher, leading to lower Massachusetts mortgage rates Tuesday. It is expected to show a reading of 50.0, which would be a small decline from July’s 50.4. The lower the reading, the better the news for bonds and mortgage pricing.

Also Tuesday is the release of the minutes from the last FOMC meeting. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member’s views on the economy and inflation and if they will hint what the Fed’s next move may be. But this is one of those events that can cause significant movement in Massachusetts mortgage rates after its release or be a non-factor. I suspect that this particular release will cause a little movement in bond prices, but not enough to significantly affect mortgage pricing.

Wednesday’s only important news is the release of the Institute for Supply Management’s (ISM) manufacturing index at 10:00 AM ET. This index measures manufacturer sentiment and is expected to show 53.0, which would be a decline from last month’s reading of 55.5. A reading above 50 means that more surveyed manufacturers felt business improved during the month than those who felt it worsened. A larger than expected decline in the index would likely cause selling in the stock markets and lead to an improvement in Massachusetts mortgage rates Wednesday.

There are two reports scheduled for Thursday. The first is the revised 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without inflation concerns. It is expected to show a downward change from the previous estimate of a 0.9% decline. Forecasts are currently calling for a 1.6% drop, meaning productivity was weaker than previously thought. This would be negative news for the bond market and Massachusetts mortgage rates.

July’s Factory Orders data will also be released Thursday morning. This report measures manufacturing sector strength and is similar to last week’s Durable Goods Orders, but includes orders for both durable and non-durable goods. It is expected to show a 0.3% increase in new orders. A smaller than expected rise would be favorable for bonds, but I don’t see this data causing much movement in Massachusetts mortgage rates unless its results vary greatly from forecasts.

The biggest news of the week comes Friday morning. The Labor Department will post the unemployment rate, number of new jobs added or lost and average hourly earnings for August early Friday morning. The ideal scenario for the bond market and Massachusetts mortgage rates is rising unemployment, a larger than expected drop in payrolls and earnings to remain unchanged. Analysts are expecting to see that the unemployment rate moved from 9.5% to 9.6% and that 118,000 jobs were lost during the month. Weaker then expected readings would be very good news for bonds and lead to lower mortgage rates Friday. However, if we get stronger than expected numbers, Massachusetts mortgage rates will probably spike higher Friday.

Overall, I expect to see the most movement in Massachusetts mortgage rates Friday, but Tuesday and Wednesday should also be fairly active. Also worth mentioning though is the fact that next Monday is Labor Day so all markets will be closed. The bond market will not close early this Friday, but many traders may head home for the long weekend after Friday’s data is posted. This means that trading will likely be thin Friday afternoon even though the markets will still be open. This could lead to additional volatility in rates as traders prepare for the long weekend, so please be careful this week if still floating an interest rate.

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…
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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1. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jun 13 2010 5:55PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
2. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Apr 4 2010 10:55PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
3. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jan 24 2010 9:12PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...

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Friday’s bond market has opened in negative territory following a positive open in stocks and mixed economic data. The major stock indexes are rallying during morning trading with the Dow up 103 points and the Nasdaq up 20 points. The bond market is currently down 14/32, which will likely push this morning’s Massachusetts mortgage rates higher by approximately .125 of a discount point.

The first of today’s two relevant economic reports was a revision to the 2nd Quarter Gross Domestic Product (GDP). It did show a downward revision from last month’s preliminary estimate, but the 1.6% annual rate of growth was slightly higher than forecasts were calling for. This means that while the economy did grow at a much slower pace during the 2nd quarter than previously announced, it appears to be at a little quicker rate than revised expectations. While the downward revision is favorable for bonds in general, today’s higher than expected reading is negative for bonds and Massachusetts mortgage rates. Also contribution to the selling was a slightly upward revision to a key inflation reading within the data.

The University of Michigan revised their Index of Consumer Sentiment for August late this morning. They announced a reading of 68.9 that fell short of forecasts. That is good news for the bond market and Massachusetts mortgage rates because lower levels of consumer confidence means consumers are less likely to make large purchases in the near future.

Also worth noting was a speech by Fed Chairman Bernanke late this morning. He spoke at a regional Fed conference in Jackson Hole, WY. His speech touched on the Fed’s economic outlook, so the markets were paying attention. However, he didn’t reveal any shocking news that the markets weren’t already aware of. He clarified a few points, such as why the Fed is now buying more debt. But none of his comments directly affected Massachusetts mortgage rates.

Yesterday’s 7-year Treasury Note auction actually went pretty well. It was basically the most successful auction of the week and appeared to have relatively strong investor demand, at least when compared to the week’s other sales. This can be considered good news for mortgage borrowers because investor appetite for long-term securities such as mortgage-related bonds needs to remain good for Massachusetts mortgage rates to stay near current levels or move lower.

Next week is packed with relevant economic data that may influence Massachusetts mortgage rates. There are important reports scheduled for release each day next week, beginning with Monday’s posting of July’s Personal Income and Outlays report. It will give us a measure of consumer ability to spend and current spending habits. It is not close to being the week’s most important release, but is considered relevant enough to affect bond trading and mortgage pricing.

The rest of the week brings us several important reports including a key measurement of manufacturer sentiment and the almighty monthly Employment report. We will likely see plenty of volatility in the broader markets and Massachusetts mortgage rates as these reports will give us several different snapshots of the economy when concerns about the economic recovery are quite strong. 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…
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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1. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 9 2010 12:14PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
2. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Mar 16 2010 12:14PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
3. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Aug 26 2010 12:41PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...

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The Labor Department gave us last week‘s unemployment figures this morning, saying that 473,000 new claims for unemployment benefits were filed last week. This was lower than analysts’ expectations, giving hope that the labor market may not be as bad as some had thought. This is bad news for bond and Massachusetts mortgage rates, but has not had much of an impact on this morning’s trading.

Yesterday’s 5-year Treasury Note auction went somewhat well. A couple of the measurements of demand showed strength while others did not. Overall, we can consider the sale average at best. Today’s 10-year Note sale is a little closer to the mortgage market, so if the sale goes well today, we may see strength in bonds and better Massachusetts mortgage rates during afternoon trading. Results will be posted at 1:00 PM ET.

There are two relevant economic reports scheduled for release tomorrow. The first is the revision to the 2nd Quarter Gross Domestic Product (GDP). The GDP is the total of all goods and services produced in the U.S. and is considered to be the best measurement of economic activity. This reading is the second of three that we see each quarter. Last month’s preliminary reading revealed that the economy grew at an annual rate of 2.4%. Tomorrow’s revision is expected to show that the GDP actually rose only 1.4%. A larger than expected downward revision should help lower Massachusetts mortgage rates, especially if the inflation portion of the release does not get revised higher. There will be a final revision issued next month, but it probably will have little impact on mortgage rates.

August’s revision to the University of Michigan’s Index of Consumer Sentiment is the second report of the day. It helps us track consumer willingness to spend and is expected to show little change from August’s preliminary reading of 69.6. If it revises lower, consumers were less confident about their personal financial situations than previously thought. This would be good news for the bond market and Massachusetts mortgage rates because waning confidence usually means that consumers are less likely to make large purchases in the near future.

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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1. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Feb 7 2010 8:41PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
2. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Aug 22 2010 7:16PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...
3. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jan 27 2010 6:38PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...

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The Commerce Department reported this morning that new orders for durable goods rose 0.3% last month, falling well short of the 3.0% gain that was expected. In addition, the reading that excludes large transportation-related orders fell 3.8% when it was forecasted to show a small increase. This means that the manufacturing sector was not as strong as expected. Durable goods orders are known to be quite volatile from month to month, so a large headline number doesn’t usually cause much alarm. However, this morning’s readings were enough of a variance from forecasts to add more fuel to the theory that the economy is moving away from a recovery. That is good news for Massachusetts mortgage rates and long-term securities such as mortgage-related bonds.

July’s New Home Sales data was also posted this morning, but it drew much less attention than the Durable Goods report did. It revealed a decline in sales of newly constructed homes when analysts had forecasted a small increase, translating into another measure of housing sector weakness. However, this report is not known to cause much movement in the markets or Massachusetts mortgage rates because it tracks a small portion of all home sales in the U.S. Therefore, its results had little impact on this morning’s bond market and mortgage pricing, leaving the Durable Goods Orders report to drive trading.

Today also brings us the 5-year Treasury Note auction. With the recent concerns about the economy taking center stage and the latest bond rally coming as a result, I would not be surprised to see today’s auction go fairly well, if not better. Tomorrow’s 10-year Note sale is a little closer to the mortgage market than today’s is, but the 5-year sale gives us an idea of what kind of appetite investors have for mid to long-term securities. If the sale goes well today, we can expect a decent interest in tomorrow’s auction. Results of each day’s sale will be posted at 1:00 PM ET. If they go well, we may see strength in bonds during afternoon trading, possibly improving Massachusetts mortgage rates later today.

There is no relevant economic data scheduled for release tomorrow except weekly unemployment figures from the Labor Department. They are expected to say that 485,000 new claims for unemployment benefits were filed last week, which would be a decline from the previous week’s surprise of 500,000. If the number of claims increased last week rather than declined as expected, the bond market should move higher as concerns about the labor market cause stocks to fall. This data usually does not have much of an impact on Massachusetts mortgage rates unless it varies greatly from forecasts, but I suspect traders will react to the report tomorrow if the number of claims did not fall below the important benchmark of 500,000 that were filed the previous week.

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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3. Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jan 27 2010 6:38PM EST Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts...

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