The Massachusetts Mortgage Broker

Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 30 2010 11:26AM EST

Geof — Fri, 30 Jul 2010 17:00:12 +0000

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 following news of slower than expected economic activity during the last few months. The stock markets initially opened with losses, but have since recovered to currently show minor gains. The Dow is currently up 15 points while the Nasdaq has gained 4 points. The bond market is currently up 13/32, which should improve this morning’s Massachusetts mortgage rates by approximately .125 – .250 of a discount point.

This morning’s big news was the release of the 2nd Quarter Gross Domestic Product (GDP), which is considered to be the best indicator of economic activity. It revealed an annual rate of growth of 2.4% that was slightly lower than forecasts. Making this even better news was a large upward revision to the 1st Quarter’s final reading, meaning economic activity slowed considerably between the first and second quarters of the year. The slowing economy creates a favorable environment for the bond market and makes longer-term securities such as mortgage-related bonds more attractive to investors. As investors move funds into bonds, their yields drop and Massachusetts mortgage rates improve.

The 2nd Quarter Employment Cost Index (ECI) was also released this morning, showing a 0.5% increase. This matched forecasts, indicating that employer costs for wages and benefits rose during the quarter. That can basically be considered bad news for bonds as it raises the possibility of wage inflation and gives consumers more fuel to spend, but since it pegged expectations its impact on this morning’s rates has been minimal.

Lastly, the University of Michigan revised their Index of Consumer Sentiment for July with a reading of 67.8. This means that consumer sentiment was stronger than previously estimated, which can be considered negative for bonds. However, it was not enough of a variance to influence bond trading or Massachusetts mortgage rates, especially since the GDP reading carries significant importance to the markets.

Next week is fairly busy with a handful of relevant economic reports scheduled for release, but it is not the number of reports that makes it an active week. It is the importance of some of the data that draws attention, such as the Institute for Supply Management’s (ISM) manufacturing index during late morning hours Monday. And the almighty monthly Employment report early Friday morning. In between there are also a couple of reports that may influence rates. 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…
Float 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.

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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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 29 2010 11:50AM EST

Geof — Thu, 29 Jul 2010 21:00:10 +0000

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Thursday’s bond market has opened in negative territory with no important economic being released this morning. The stock markets are showing gains with the Dow up 40 points and the Nasdaq up 2 points. The bond market is currently down 5/32, but we will likely see little change in this morning’s Massachusetts mortgage rates due to strength in bonds late yesterday.

Today’s only relevant data came from the Labor Department, who announced that 457,000 new claims for unemployment benefits were filed last week. This was below forecasts of 464,000, meaning this can be considered negative for bonds. However, this data is not considered to be important to Massachusetts mortgage rates and has had little influence on this morning’s trading.

Both of yesterday’s afternoon events were favorable for bonds and mortgage pricing. The 5-year Treasury Note auction went very well, indicating that investor demand for U.S. securities remains strong. That is good news for mortgage rates because that interest should carryover to mortgage-related securities also. The second of the two relevant sales is taking place today with 7-year Notes being sold. These are a little longer term than yesterday’s securities, which is closer to mortgage bond terms, so another strong sale should lead to improved Massachusetts mortgage rates this afternoon.

The Federal Reserve’s Beige Book report was released yesterday afternoon. It did not give us any negative surprises about economic growth. Most regions had reported modest growth with a couple showing negative activity. The concerns about the economy, such as unemployment and housing, remained considerable in many of the regions. This was all good news for bonds because this information will be relied on heavily when the Fed meets August 10th for their next FOMC meeting.

There are three releases scheduled for release tomorrow morning, including one of the most important reports we regularly see. That one is the preliminary reading of the 2nd Quarter Gross Domestic Product (GDP), which is considered to be the best indicator of economic activity. It is the sum of all goods and services produced in the U.S. and usually has a great deal of influence on the financial markets. There are two revisions approximately one month apart, but the preliminary posting carries the most importance. Current forecasts are estimating that the economy grew at a 2.5% annual rate during the second quarter. A faster pace will probably hurt bond prices, leading to higher Massachusetts mortgage rates tomorrow. But a smaller than expected reading would likely fuel a bond market rally and lead to lower mortgage pricing.

The second report of the day is the 2nd Quarter Employment Cost Index (ECI) that measures employers’ costs for wages and benefits. It is considered to be an important measurement of wage inflation and can impact the bond market and mortgage rates if it varies much from forecasts. If it shows a rapid increase, raising inflation concerns, the bond market may drop and mortgage rates rise. It is expected to reveal an increase of 0.5%, but the GDP reading likely will have more of an influence on the markets and Massachusetts mortgage rates.

Tomorrow’s third piece of data is the revision to July’s University of Michigan Index of Consumer Sentiment that will help us measure consumer optimism about their own financial situations. As with Tuesday’s CCI release, this data is considered important because rising consumer confidence usually translates into higher levels of spending. This adds fuel to the economic recovery and is looked at as bad news for bonds. Tomorrow’s release is an update to the preliminary reading we saw two weeks ago, so unless we see a drastic revision to the preliminary estimate, I think the markets will probably shrug this news off. It is expected to be revised to 67.5.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 28 2010 11:23AM EST

Geof — Wed, 28 Jul 2010 15:23:08 +0000

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Wednesday’s bond market has opened relatively flat even though we saw weaker than expected results in this morning’s economic news and a negative open in stocks. The stock markets are posting minor losses with the Dow down 20 points and the Nasdaq down 8 points. The bond market is currently up 2/32, which will likely improve this morning’s Massachusetts mortgage rates by approximately .125 of a discount point.

The Commerce Department gave us this morning’s important economic news with the release of June’s Durable Goods Orders. They announced a decline of 1.0% in new orders for big-ticket items when analysts were expecting to see a 0.7% increase. This data is known to be volatile from month to month, but this is still a sizable difference. Even if larger, more volatile transportation-related orders were excluded, we would have seen a drop of 0.6%. That was also well short of forecasts, indicating that the manufacturing sector may have been weaker than expected last month. Therefore, this data can be considered favorable for the bond market and Massachusetts mortgage rates.

The Federal Reserve will release its Beige Book report at 2:00 PM ET this afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. Since Fed Chairman Ben Bernanke’s testimony to Congress last week gave us a recent update, I don’t think we will see any significant surprises in this report. Therefore, we will likely see little movement in Massachusetts mortgage rates as a result of this report.

Also today is the first of this week’s two Treasury auctions that may influence mortgage rates. Today’s sale is the 5-year Note auction while tomorrow brings us the 7-year Note sale. Their results will be posted at 1:00 PM ET both days, so any reaction will come during afternoon hours. If investor interest was strong, the bond market may rally and Massachusetts mortgage rates could move lower later today. However, lackluster demand could lead to bond selling and higher mortgage rates.

There is no relevant monthly or quarterly economic data being posted tomorrow. The Labor Department will post weekly unemployment figures early tomorrow morning, but this data usually has a minimal impact on mortgage rates. Since it tracks only a week’s worth of new claims for unemployment benefits, it takes a large variance from forecasts for the bond market to react enough to influence Massachusetts mortgage rates. Analysts are expecting to see little change from the previous week’s 464,000 new claims.

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…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 27 2010 11:35AM EST

Geof — Tue, 27 Jul 2010 15:35:09 +0000

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Tuesday’s bond market has opened in negative territory despite weaker than expected economic news and an uneventful morning in stocks. The major stock indexes are mixed with the Dow up 6 points and the Nasdaq down 4 points. The bond market is currently down 9/32, which will likely push this morning’s Massachusetts mortgage rates higher by approximately .125 of a discount point.

July’s Consumer Confidence Index (CCI) was released late this morning, revealing a 50.4 reading. This was a sizable drop from June’s reading, its’ lowest since February and weaker than analysts’ expectations. That is good news for bonds and Massachusetts mortgage rates because declining confidence means consumers are less likely to make large purchases in the near future. However, it appears that the markets are not allowing this morning’s trading to be influenced by the news.

This morning’s bond losses have pushed the benchmark yield of the 10-year Treasury Note back above 3.00%. If it remains there, I believe we are in for more bond selling and higher mortgage rates. We have plenty of relevant data still to come this week that can heavily move the markets and bring the yield below that threshold. That is assuming that we get favorable results from the report though. I am not too concerned about the 3.03% yield, but it does cause me to take a slightly more cautious approach towards Massachusetts mortgage rates.

Tomorrow brings us two events that are relevant to mortgage rates. The first will come from the Commerce Department when they post June’s Durable Goods Orders at 8:30 AM ET. Current forecasts are currently calling for an increase in new orders of 0.6% from May to June. This data gives us an indication of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items, or products that are expected to last three or more years. A stronger than expected number may lead to higher mortgage rates Wednesday morning. If it reveals a much smaller than expected increase, mortgage rates should drop. It should be noted though that this data is known to be extremely volatile from month to month, so a minor difference between forecasts and the actual reading may not move Massachusetts mortgage rates much.

The Federal Reserve will release its Beige Book report at 2:00 PM ET tomorrow afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. Since Fed Chairman Ben Bernanke’s testimony to Congress last week gave us a recent update, I don’t think we will see any significant surprises in this report. Therefore, we will likely see little movement in Massachusetts mortgage rates tomorrow afternoon as a result of this report.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 26 2010 1:49PM EST

Geof — Mon, 26 Jul 2010 17:49:08 +0000

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Monday’s bond market has opened flat despite stronger than expected economic data and stock gains. The stock markets are starting the week in positive ground with the Dow up 60 points and the Nasdaq up 13 points. The bond market is currently unchanged from Friday’s level, but we will probably see a slight increase in this morning’s Massachusetts mortgage rates as a result of weakness late Friday.

June’s New Home Sales was today’s only relevant economic news posted this morning. The Commerce Department said late this morning that sales of newly constructed homes rose last month by more than analysts had expected. However, this data is not important enough to cause noticeable movement in the markets or Massachusetts mortgage rates.

The rest of the week brings us six more economic reports and a couple of Treasury auctions that may influence mortgage rates. Today’s data was one of the least important of the week and there is no relevant data being posted Thursday. This means that we have six relevant reports for the markets to digest over only three days, which should translate into an active week for Massachusetts mortgage rates.

The Conference Board will post their Consumer Confidence Index (CCI) for July late tomorrow morning. This index measures consumer sentiment, giving us an idea of consumer willingness to spend. If consumers are confident in their own financial situations, they are more apt to make large purchases in the near future. This is important because consumer spending makes up two-thirds of the U.S. economy. If the CCI reading is weaker than expected, meaning that consumers were less confident than thought, we may see bond prices rise and Massachusetts mortgage rates drop Tuesday. Current forecasts are calling for a reading of 51.0, which would be a lower reading than June’s and indicate consumers are becoming less comfortable with their finances.

Overall, I am expecting a fairly active week in the mortgage market. With several important economic reports on tap, we will likely see noticeable movement in mortgage rates more than one day. The most important report of the week is Friday’s preliminary GDP reading, making it one of the most important days of the week. But it is difficult to say which day we can expect to see the most movement in rates as several of releases and scheduled events have the potential to influence Massachusetts mortgage rates.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 25 2010 8:37PM EST

Geof — Mon, 26 Jul 2010 00:37:08 +0000

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

There are seven reports scheduled for release this week that may affect mortgage pricing in addition to two relevant Treasury auctions. The first is tomorrow’s release of June’s New Home Sales that gives us a measurement of housing sector strength and mortgage credit demand. It is expected to show a small increase in sales of newly constructed homes, indicating that the housing sector gained some strength. That would be considered negative news for bonds, but since this data tracks only 15% of all home sales it usually has little impact on the bond market and Massachusetts mortgage rates unless it varies greatly from forecasts.

The Conference Board will post their Consumer Confidence Index (CCI) for July late Tuesday morning. This index measures consumer sentiment, giving us an idea of consumer willingness to spend. If consumers are confident in their own financial situations, they are more apt to make large purchases in the near future. This is important because consumer spending makes up two-thirds of the U.S. economy. If the CCI reading is weaker than expected, meaning that consumers were less confident than thought, we may see bond prices rise and Massachusetts mortgage rates drop Tuesday. Current forecasts are calling for a reading of 51.0, which would be a lower reading than June’s and indicate consumers are becoming less comfortable with their finances.

Wednesday brings us two events that are relevant to mortgage rates. The first will come from the Commerce Department when they post June’s Durable Goods Orders at 8:30 AM ET. Current forecasts are currently calling for an increase in new orders of 1.0% from May to June. This data gives us an indication of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items, or products that are expected to last three or more years. A stronger than expected number may lead to higher mortgage rates Wednesday morning. If it reveals a much smaller than expected increase, Massachusetts mortgage rates should drop. It should be noted though that this data is known to be extremely volatile from month to month, so a minor difference between forecasts and the actual reading may not move mortgage rates much.

The Federal Reserve will release its Beige Book report Wednesday afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. Since Fed Chairman Ben Bernanke’s testimony to Congress last week gave us a recent update, I don’t think we will see any significant surprises in this report. Therefore, we will likely see little movement in Massachusetts mortgage rates Wednesday afternoon as a result of this report.

There is no relevant monthly or quarterly data scheduled for release Thursday, but there are three releases scheduled to be posted Friday morning. The first is the preliminary reading of the 2nd Quarter Gross Domestic Product (GDP), which is considered to be the best indicator of economic activity. It is the sum of all goods and services produced in the U.S. and usually has a great deal of influence on the financial markets. This reading is arguably the single most important we get regularly. Current forecasts are estimating that the economy grew at a 2.5% annual rate during the second quarter. A faster pace will probably hurt bond prices, leading to higher mortgage rates Friday. But a smaller than expected reading would likely fuel a bond market rally and lead to lower Massachusetts mortgage rates.

The second report of the day Friday is the 2nd Quarter Employment Cost Index (ECI) that measures employers’ costs for wages and benefits. It is considered to be an important measurement of wage inflation and can impact the bond market and mortgage rates if it varies much from forecasts. If it shows a rapid increase, raising inflation concerns, the bond market may drop and mortgage rates rise. It is expected to reveal an increase of 0.5%, but the GDP reading likely will have more of an influence on the markets and Massachusetts mortgage rates.

Friday’s third piece of data is the final revision to July’s University of Michigan Index of Consumer Sentiment that will help us measure consumer optimism about their own financial situations. As with Tuesday’s CCI release, this data is considered important because rising consumer confidence usually translates into higher levels of spending. This adds fuel to the economic recovery and is looked at as bad news for bonds. Friday’s release is an update to the preliminary reading we saw two weeks ago, so unless we see a drastic revision to the preliminary estimate, I think the markets will probably shrug this news off.

Also worth mentioning are a couple of Treasury auctions that may affect bond trading and Massachusetts mortgage rates this week. The two most important are Wednesday’s 5-year Note and Thursday’s 7-year Note sales. Results of this week’s auctions will be posted 1:00 PM ET each day. If investor interest is strong, we can expect the broader bond market to rally and mortgage rates to move lower. However, lackluster demand could lead to bond selling and higher mortgage rates Wednesday and Thursday afternoons.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 23 2010 12:07PM EST

Geof — Fri, 23 Jul 2010 16:07:28 +0000

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Friday’s bond market has opened down slightly with no relevant data to drive trading. The stock markets are mixed with the Dow up 24 points and the Nasdaq down 3 points. The bond market is currently down 3/32, but due to yesterday’s late strength we should see an improvement of approximately .125 of a discount point in this morning’s Massachusetts mortgage rates.

There is no relevant economic data scheduled for release today, leaving the stock markets to influence bond trading and mortgage pricing. With an uneventful morning in stocks, the bond market has followed suit for the most part. If the major stock indexes remain near current levels throughout the day, Massachusetts mortgage rates should do the same.

Next week is fairly busy with quite a few relevant economic reports scheduled. There is monthly or quarterly data being posted every day except one, including Monday when we get the sister release of yesterday’s housing report. The only data Monday is June’s New Home Sales that tracks the remaining 15% of housing transactions that yesterday’s Existing Home Sales report did not. However, it is next week’s least important data for Massachusetts mortgage rates.

The rest of the week’s releases include measurements of consumer confidence, manufacturing sector strength and employer costs for wages and benefits in addition to the Fed Beige Book that tracks economic conditions by Fed regions and two relevant Treasury auctions. The big news will be the initial reading on the 2nd Quarter Gross Domestic Product (GDP), but look for more details on next week’s events and Massachusetts mortgage rates in Sunday’s weekly preview.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 22 2010 12:15PM EST

Geof — Thu, 22 Jul 2010 16:15:10 +0000

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Thursday’s bond market has opened in negative territory following early stock gains and stronger than expected economic results. The stock markets are rebounding from yesterday’s losses with the Dow up 223 points and the Nasdaq up 56 points. The bond market is currently down 12/32, but due to strength late yesterday we will likely see little change in this morning’s Massachusetts mortgage rates.

The Labor Department gave us the first of three economic reports this morning. They said that 464,000 new claims for unemployment benefits were filed last week. This was higher than expected and can be considered good news for bonds and Massachusetts mortgage rates, but the data does not carry enough weight to offset the other reports and stock rally that we are seeing this morning.

The National Association of Realtors said that home resales fell 5.1% last month. While this is a sizable drop and basically favorable news for bonds, it was a smaller decline than many analysts had expected. This means that while home sales fell, they were still stronger than forecasts were calling for. Fortunately for Massachusetts mortgage rates, this data also is not considered to be highly important.

June’s Leading Economic Indicators (LEI) was today’s last report. The Conference Board reported a 0.2% decline, indicating that economic activity is likely to slow in the coming months. Analysts were expecting to see a 0.4% drop in the index, so this data can be considered negative for bonds and Massachusetts mortgage rates.

There is no relevant economic data scheduled for release tomorrow, so look for the stock markets to be the biggest force behind bond trading and mortgage rates. If stocks rally again, we may see increases in mortgage rates. But if the major stock indexes give back some of today’s gains, we may see improvements to Massachusetts mortgage rates tomorrow.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 21 2010 3:56PM EST

Geof — Wed, 21 Jul 2010 19:56:22 +0000

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

WEDNESDAY AFTERNOON UPDATE:
The bond market has reacted favorably to Fed Chairman Bernanke’s testimony to the Senate Banking Committee. Mr. Bernanke didn’t say anything that was a major surprise, but did hit some key points that are favorable to bonds and Massachusetts mortgage rates. He said that he expects key short-term rates to remain low for an “extended period,” that the economic recovery will be slower than previously estimated and that the Fed could take further stimulus action of needed. He added that inflation remains lower than earlier forecasts.

All of those points are favorable to long-term securities such as mortgage-related bonds and in turn Massachusetts mortgage rates. This is particularly true of the inflation comments because inflation erodes the value of a bond’s future fixed interest payments, making them less attractive to investors.

The stock markets have moved lower with the Dow down 134 points and the Nasdaq down 32 points. The bond market has improved from earlier levels, currently up 14/32. That is enough of a move to improve Massachusetts mortgage rates this afternoon by approximately .125 of a discount point. However, many lenders may opt to reflect this improvement in tomorrow’s rates rather than revising today’s pricing.

Mr. Bernanke will repeat his testimony tomorrow in front of the House Financial Services committee. He is not likely to say anything that would contradict or differ much from today’s prepared statement. The question and answer portion of the proceeding could bring something of a surprise, but it is not of much concern to me.

The Labor Department will give us last week’s unemployment figures early tomorrow morning. They are expected to say that 445,000 new claims for unemployment benefits were filed last week, which would be an increase from the previous week. The higher the number of claims, the better the news for bonds. But since this data tracks only a single week’s worth of claims, it usually has a minimal impact on Massachusetts mortgage rates.

The National Association of Realtors will post June’s Existing Home Sales figures late tomorrow morning. This report gives us a measurement of housing sector strength and mortgage credit demand, but as with all of this week’s data it is not considered highly important. Current forecasts are calling for a decline in sales from May’s totals. A larger than expected drop in sales would be considered good news for bonds and Massachusetts mortgage rates because a weak housing sector will make it difficult for the economy to recover anytime soon. However, unless this data varies greatly from forecasts it probably will not cause much of a change in mortgage rates.

June’s Leading Economic Indicators (LEI) at 10:00 AM will also be posted late tomorrow. This Conference Board index attempts to measure economic activity over the next three to six months. While it is not a factual report, it still is considered to be of moderate importance to the bond market and Massachusetts mortgage rates. It is expected to show a 0.4% decrease, meaning that we may see noticeable pullback in economic activity over the next few months. A larger decline in the index would be good news for the bond and mortgage markets.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

Float if my closing was taking place within 7 days…
Float 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…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Jul 21 2010 12:19PM EST

Geof — Wed, 21 Jul 2010 18:19:10 +0000

Your Daily Mortgage Commentary & Rate Lock Advice for Massachusetts Mortgage Rates
Courtesy of the Massachusetts Mortgage Broker

Wednesday’s bond market has opened in positive territory with the stock markets showing early losses. The Dow is currently down 23 points while the Nasdaq has lost 16 points. The bond market is currently up 6/32, which should keep this morning’s Massachusetts mortgage rates at yesterday’s morning levels.

There is no relevant economic data to be posted today, so this morning’s trading is being driven by stock movement and speculation about today’s semi-annual congressional testimony of Fed Chairman Bernanke. He was originally scheduled to speak at 10:00 AM ET, but that has been pushed back to 2:00 PM ET. His testimony will be to Senate Banking Committee today and the House Financial Services Committee Thursday morning.

This event will be televised and watched very closely by market participants and analysts. We usually see the most movement in Massachusetts mortgage rates during the first day of this semi-annual testimony since his prepared words for both appearances are usually quite similar to each other, meaning that the second day of testimony rarely gives us anything we did not hear during the first day.

June’s Leading Economic Indicators (LEI) at 10:00 AM will also be posted late tomorrow. This Conference Board index attempts to measure economic activity over the next three to six months. While it is not a factual report, it still is considered to be of moderate importance to the bond market. It is expected to show a 0.4% decrease, meaning that we may see noticeable pullback in economic activity over the next few months. A larger decline in the index would be good news for the bond and Massachusetts mortgage rates.

If I were considering purchasing or refinancing a home and predicting likely Massachusetts mortgage rates, I would…

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