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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Aug 15 2010 7:22PM EST

Geof — Sun, 15 Aug 2010 23:22:09 +0000

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

This week brings us the release of four reports that may influence Massachusetts mortgage rates, but only one of them is considered to be highly important. With no relevant auctions or speeches on tap, I suspect we will see much less movement in mortgage rates this week compared to the past couple of weeks. There is no relevant data scheduled for release tomorrow, so look for the stock markets to drive bond trading and mortgage rates.

Three of the week’s four reports will be posted Tuesday morning. The first is July’s Producer Price Index (PPI) that gives us an indication of inflation at the producer level of the economy. There are two readings in the report- the overall index and the core data reading. The core data is more important because it excludes more volatile food and energy prices that can change significantly from month to month. Current forecasts call for an increase of 0.2% in the overall and a 0.1% increase in the core data reading. A larger increase in the core data could push Massachusetts mortgage rates higher Tuesday morning. If it reveals weaker than expected readings, we may see mortgage rates improve as a result.

The second report of the day is July’s Housing Starts data. This report gives us an indication of housing sector strength and future mortgage credit demand. However, it isn’t considered to be of high importance to the bond market or mortgage pricing and usually doesn’t cause much movement in Massachusetts mortgage rates unless it varies greatly from forecasts. It is the least important of the week’s reports and is expected to show a small increase in construction starts of new homes. The lower the number of starts, the better the news for the bond market, as it would indicate a weaker than expected housing sector.

July’s Industrial Production is the third. It gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be moderately important to the markets, but will likely not have much if an impact on Massachusetts mortgage rates due to the importance of the PPI reading. Current forecasts are calling for a 0.6% increase in production.

The Conference Board will give us its Leading Economic Indicators (LEI) for July late Thursday morning. This index attempts to measure economic activity over the next three to six months and is considered to be moderately important. A higher than expected reading is bad news for the bond market because it indicates that the economy may be strengthening more than thought. However, a weaker than expected reading means that the economy may not grow as much as predicted, making stocks less appealing to investors. This also eases inflation concerns in the bond market and could lead to slightly lower Massachusetts mortgage rates Thursday if the stock markets remain calm. It is expected to show an increase of 0.2 % in the index, indicating minor economic growth over the next couple of months.

Overall, look for Tuesday to be the busiest day of the week for Massachusetts mortgage rates with the PPI being released. The rest of the week will likely be influenced more by stock prices than anything else, which may be quite volatile. Therefore, keep an eye on the markets and maintain contact with your mortgage professional if you have not locked an interest rate yet.

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.

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 Aug 13 2010 12:11PM EST

Geof — Fri, 13 Aug 2010 16:11:10 +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 after this morning’s key economic data gave us mixed results. The stock markets are in negative territory again, but only by a few points. The Dow is currently down 7 points while the Nasdaq has lost 9 points. The bond market is currently up 8/32, but due to weakness in bonds late yesterday we will likely see little change in this morning’s Massachusetts mortgage rates.

July’s Consumer Price Index (CPI) was the first of today’s three economic reports. The Labor Department reported that the overall CPI reading rose 0.3% while the core data rose 0.1%. The more important core reading matched forecasts, but the overall reading was slightly stronger than expected. This means that prices at the consumer level of the economy rose slightly last month if volatile food and energy costs are excluded. This can be considered fairly good news for the bond market and Massachusetts mortgage rates because it indicates that inflation remains subdued.

The second report of the day was July’s Retail Sales data. It showed that retail level sales rose 0.4% last month, falling just short of expectations. This is good news for the bond market because it means that consumers did not spend as much as analysts had expected, which translates into less fuel for economic growth. But it was not enough of a variance to lead to a large rally in bonds or noticeable improvement in Massachusetts mortgage rates this morning.

The last report of the day was the University of Michigan’s Index of Consumer Sentiment for August. It came in at 69.6, exceeding last month’s final reading of 67.8 and forecasts of 69.0. That means that consumers were more optimistic about their own financial situations than they were in July. The increase should be considered negative news since it hints that consumers may be more willing to spend in the immediate future. However, this was the least important of today’s three reports and did not differ enough from forecasts to lead to changes in Massachusetts mortgage rates.

Next week brings us the release of a few reports worth watching, but only one is considered to be highly important. There is no relevant data scheduled for Monday, so we should expect the stock markets to influence bond trading and Massachusetts mortgage rates more than anything else. The relevant data starts Tuesday, which includes another important inflation reading. 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…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Aug 12 2010 12:34PM EST

Geof — Thu, 12 Aug 2010 16:34:08 +0000

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

Thursday’s bond market has opened flat following weaker than expected results from today’s minor economic news. The stock markets are extending yesterday’s sell-off after tech-giant Cisco Systems reported disappointing earning results. The Dow is currently down 58 points while the Nasdaq has lost 18 points. The bond market is currently up 2/32, which will likely keep this morning’s Massachusetts mortgage rates at yesterday’s levels.

The Labor Department gave us today’s only semi-relevant economic data with the release of last week’s unemployment numbers. They said early this morning that 484,000 new claims for unemployment benefits were filed last week. That was a slight increase from the previous week’s revised total and a much larger number than what analysts were expecting this morning. Therefore, this data can be considered favorable for the bond market and Massachusetts mortgage rates.

Yesterday’s 10-year Treasury Note sale went fairly well. The readings used to measure its success were a little mixed, but overall it is being considered positive for the broader bond market. If today’s 30-year Bond sale goes equally well, we may see further improvements to bonds later today. However, I am not expecting a reaction that is strong enough to improve Massachusetts mortgage rates this afternoon. Results of the sale will be posted at 1:00 PM ET.

Tomorrow brings us the release of three reports, two of which are highly important to the markets and Massachusetts mortgage rates. The first is July’s Consumer Price Index (CPI) at 8:30 AM. The CPI is one of the most important reports we see each month. It measures inflation at the consumer level of the economy. There are two readings in the report- the overall index and the core data reading. The more important of the two is the core data because it excludes more volatile food and energy prices. Current forecasts call for a 0.2% increase in the overall index and a 0.1% increase in the core data reading. Declines in the readings, especially in the core data, should lead to a bond rally and lower Massachusetts mortgage rates. However, if we see stronger than expected readings tomorrow, mortgage pricing may jump higher.

July’s Retail Sales data is the second report of the day and is nearly important as the CPI. This data is very important to the financial markets and Massachusetts mortgage rates because it helps us measure consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, any data related to it can cause a fair amount of movement in the markets. A smaller than expected increase would indicate that consumers are spending less than previously thought, potentially slowing the economic recovery. This is good news for the bond market and mortgage rates as it eases inflation concerns and makes long-term securities such as mortgage-related bonds more attractive to investors. Current forecasts are calling for an increase of 0.5%.

The last report of the day will come from the University of Michigan, who will release their Index of Consumer Sentiment for August at 9:45 AM. This index gives us a measurement of consumer willingness to spend. If confidence is rising, then consumers are more apt to make large purchases. This helps fuel consumer spending and economic growth. By theory, a drop in confidence should boost bond prices, but this is the least important of the day’s three reports and will probably have little impact on 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 Aug 11 2010 1:19PM EST

Geof — Wed, 11 Aug 2010 17:19:10 +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, extending yesterday’s late rally. The stock markets are posting sizable losses with the Dow down 184 points and the Nasdaq down 51 points. The bond market is currently up 10/32, which with yesterday’s afternoon improvements should improve today’s Massachusetts mortgage rates by approximately .250 – .375 of a discount point compared to yesterday’s morning rates.

Today’s only relevant economic data was June’s Trade Balance that was released early this morning. It showed that the U.S. trade deficit stood at $49.9 billion in June. This was a much larger deficit than many had expected, but this data is not considered to be highly important to the bond market. Therefore, its results have had only a very slight impact on this morning’s trading and Massachusetts mortgage rates.

There is no relevant monthly or quarterly economic data scheduled for release tomorrow, but we will get weekly unemployment figures from the Labor Department. They are expected to say that 465,000 new claims for unemployment benefits were filed last week, falling from the previous week’s 479,000 total. Since this data only tracks a single week’s worth of claims, it usually takes a wide variance from forecasts for this report to affect Massachusetts mortgage rates.

Friday brings us the release of three reports that will likely influence mortgage pricing. Two of them are considered to be very important to the financial and mortgage markets. Those two reports, July’s Retail Sales and Consumer Price Index, can lead to sizable movement in the markets and Massachusetts mortgage rates. So, expect an active day in the mortgage market Friday.

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 Aug 10 2010 4:06PM EST

Geof — Tue, 10 Aug 2010 20:06:08 +0000

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

TUESDAY AFTERNOON UPDATE:
Today’s FOMC meeting has adjourned with no change to key short-term interest rates. However, the post-meeting statement did give us a bit of a surprise that was quite favorable to the bond market and Massachusetts mortgage rates. In the statement the Fed indicated that they expect the economy to grow at a slower pace than estimated at the last FOMC meeting in late June. They renewed their “subdued” outlook for inflation, which is the key point for the bond market and the indication that they expect to keep key interest rates at their current level for an “extended period.” That leads market participants to believe that the Fed is still concerned about the economy’s ability to expand and maintain momentum.

The surprise came from an announcement that the Fed will use funds from its holdings in mortgage bonds to buy more government debt. What this means is that the Fed is taking its interest payments and reinvesting them into the economic recovery. This will be a much smaller campaign than we saw from them last year and early this year, but it is still considered good news for Massachusetts mortgage rates. The goal is to help keep long-term interest rates low, such as home mortgage rates and corporate bond rates, in an effort to spur more spending and economic activity. The general consensus is that the impact this will have on the economy is minimal, but it does show that the Fed is attentive to current conditions and is ready to take more measures if needed.

The financial markets have rallied after the announcement was made, particularly bonds. The stock markets erased a good part of their earlier losses, while the bond market extended its morning gains. The Dow is currently down 38 points and the Nasdaq is down 22 points. The bond market is currently up 20/32, which should improve Massachusetts mortgage rates by approximately .125 – .250 of a discount point from this morning’s rates.

Second quarter Employee Productivity and Costs data was released early this morning. It revealed a surprising 0.9% decline in worker productivity. This means that employees were less productive during the quarter than many had thought. That can be considered bad news for bonds, but offsetting that surprise was a much smaller than expected increase in labor costs. They rose 0.2% compared to the 1.4% rise that was forecasted, which means that employer costs for wages rose at a slower pace than expected. That can be considered good news for the bond market and Massachusetts mortgage rates because rising costs translates into higher prices for products at the consumer level and gives workers more money to spend, fueling economic activity.

Tomorrow’s only data will be June’s Trade Balance report at 8:30 AM ET. It gives us the size of the U.S. trade deficit but is the week’s least important report and likely will have little impact on the bond market and Massachusetts mortgage rates. Analysts are expecting to see a $42.5 billion deficit, but it will take a wide variance to directly influence mortgage pricing.

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 Aug 10 2010 12:59PM EST

Geof — Tue, 10 Aug 2010 16:59:10 +0000

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

Tuesday’s bond market has opened up slightly after this morning’s economic news gave us mixed results. The stock markets are showing losses with the Dow down 84 points and the Nasdaq down 21 points. The bond market is currently up 2/32, which may improve this morning’s Massachusetts mortgage rates by approximately .125 of a discount point.

Today also brings us another FOMC meeting. It is a single day meeting that will adjourn at 2:15 PM ET. There is practically no possibility of the Fed changing key short-term interest rates, but the markets will be watching the post-meeting statement very closely. Mr. Bernanke and some of his colleagues have indicated recently that the economy is not growing as quickly as previously thought and have renewed concerns about certain hurdles such as housing and unemployment. So, it would not be a surprise to see some minor adjustment to the statement that would hint a more cautious tone than previous statements. If this is the case, we may see bond prices rise and Massachusetts mortgage rates move lower during afternoon trading today.

Look for an update to this report shortly after the markets have an opportunity to react to this afternoon’s event.

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 Aug 9 2010 2:50PM EST

Geof — Mon, 09 Aug 2010 18:50:10 +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 modest stock gains. The stock markets are starting the week in positive territory with the Dow up 25 points and the Nasdaq up 8 points. The bond market is nearly unchanged from Friday’s close, which should keep this morning’s Massachusetts mortgage rates close to Friday’s levels.

There is no relevant economic data scheduled for release today, so look for the stock markets to be the cause of any afternoon revision to mortgage rates. If the major stock indexes move upward from current levels, we could see bonds weaken and Massachusetts mortgage rates increase later today. But if stocks move lower by a good margin, we should see mortgage pricing improve this afternoon.

The rest of the week brings us the release of five economic reports for the bond market to digest in addition to another FOMC meeting and two relevant Treasury auctions. It starts tomorrow morning when Employee Productivity and Costs data for the second quarter will be posted. It will give us an indication of employee output. High levels of productivity are believed to allow the economy to grow without fears of inflation. I don’t see this being a big mover of mortgage pricing, but since it is the only data of the day it may influence rates slightly during morning trading. Analysts are currently expecting to see an increase in productivity of only 0.1%. A higher than expected reading could help improve bonds, leading to lower Massachusetts mortgage rates tomorrow.

The next FOMC meeting, which is a single day meeting, is tomorrow and will adjourn at 2:15 PM ET. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed’s next move may be and when it will come. If the statement does not give us new information, Massachusetts mortgage rates will probably move little after its release.

The most important data of the week comes Friday when we will get three reports, two of which are highly important to the markets and Massachusetts mortgage rates. Those two reports, July’s Retail Sales and Consumer Price Index, can lead to sizable movement in the markets and mortgage pricing.

Overall, look for the most movement in bond prices and Massachusetts mortgage rates late in the week. Friday will likely turn out to be the most important day with two of the week’s most important releases and three reports scheduled altogether. If we get stronger than expected results in the Retail Sales and CPI releases, we may see Massachusetts mortgage rates spike higher fairly quickly. I suspect the FOMC meeting will not have as much of an influence on mortgage rates as recent meetings have, but the markets can react wildly to a single word or omission of a word in the statement, so we need to be cautious. This is certainly another week that continuous contact with your mortgage professional is highly recommended if you are still floating an interest rate.

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 Aug 8 2010 5:22PM EST

Geof — Sun, 08 Aug 2010 21:22:08 +0000

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

This week brings us the release of five relevant economic reports in addition to another FOMC meeting and two relevant Treasury auctions. The first is Employee Productivity and Costs data for the second quarter that will be released Tuesday morning. It will give us an indication of employee output. High levels of productivity are believed to allow the economy to grow without fears of inflation. I don’t see this being a big mover of mortgage pricing, but since it is the only data of the day it may influence rates slightly during morning trading. Analysts are currently expecting to see an increase in productivity of only 0.1%. A higher than expected reading could help improve bonds, leading to lower Massachusetts mortgage rates Tuesday.

The FOMC meeting will be held Tuesday and will adjourn at 2:15 PM ET. It is expected to yield no change to key interest rates. Usually, the post-meeting comments seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Look for the statement to lead to volatility during afternoon trading if it hints at what the Fed’s next move may be and when it will come. If the statement does not give us new information, Massachusetts mortgage rates will probably move little after its release.

June’s Trade Balance report will be released early Wednesday morning. It gives us the size of the U.S. trade deficit but is the week’s least important report and likely will have little impact on the bond market and mortgage rates. Analysts are expecting to see a $42.5 billion deficit, but it will take a wide variance to directly influence Massachusetts mortgage rates.

There is no important data on the calendar for Thursday. Friday brings us the release of three reports, two of which are highly important to the markets and Massachusetts mortgage rates. The first is July’s Consumer Price Index (CPI) at 8:30 AM. The CPI is one of the most important reports we see each month. It measures inflation at the consumer level of the economy. There are two readings in the report- the overall index and the core data reading. The more important of the two is the core data because it excludes more volatile food and energy prices. Current forecasts call for a 0.2% increase in the overall index and a 0.1% increase in the core data reading. Declines in the readings, especially in the core data, should lead to a bond rally and lower Massachusetts mortgage rates. However, stronger than expected readings will likely cause a spike in mortgage pricing Friday.

Also worth noting are two important Treasury auctions this week. The sale of 10-year Notes will be held Wednesday while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms participating prepare for them. However, as long as they are met with decent demand from investors, the firms usually buy them back. This tends to help recover any pre-sale losses. But, if the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lower after the results are posted and Massachusetts mortgage rates may move higher. Those results will be announced at 1:00 PM each sale day.

Overall, look for the most movement in bond prices and Massachusetts mortgage rates late in the week. Friday will likely turn out to be the most important day with two of the week’s most important releases and three reports scheduled altogether. If we get stronger than expected results in the Retail Sales and CPI releases, we may see mortgage rates spike higher fairly quickly. I suspect the FOMC meeting will not have as much of an influence on mortgage rates as recent meetings have, but the markets can react wildly to a single word or omission of a word in the statement, so we need to be cautious. This is certainly another week that continuous contact with your mortgage professional is highly recommended if you are still floating an interest rate.

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 Aug 6 2010 11:35AM EST

Geof — Fri, 06 Aug 2010 15:35:12 +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 after this morning’s important economic news gave us somewhat favorable results. The stock markets have reacted negatively to the data, pushing the Dow down 117 points and the Nasdaq down 33 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 data came from the Labor Department, who reported that the U.S. unemployment rate held at 9.5% last month and that 131,000 jobs were lost. The unemployment rate was expected to rise to 9.6%, so the news was not all great for the bond market or Massachusetts mortgage rates. But analysts were expecting to see that the economy lost only 85,000 jobs. In addition, today’s report also revised June’s payroll loss higher by nearly 100,000, meaning June was much worse than previously thought. The larger than expected loss in payrolls and the sizable revision to June’s numbers have led to today’s solid open in bonds.

In a bit of bad news for bonds, it was also reported that average earnings were revised higher for June and rose 0.2% last month when they were expected to rise only 0.1%. The bond market does not like to see rising income because it raises concerns about wage inflation and gives consumers more funds to spend that fuels economic activity. However, that reading was not enough to erase the positive tone for bonds this morning.

The benchmark 10-year Treasury Note has broken below the pesky 2.90% that was a strong resistance point. This fact, along with the appearance that stocks may continue to fall today, leads me to believe we may see more improvements to Massachusetts mortgage rates this afternoon. While this is no guarantee, the indicators do point that direction in my opinion.

Next week will be a busy week for the bond market and Massachusetts mortgage rates with a few important economic reports, two relevant Treasury auctions and another FOMC meeting all on tap. The most important economic data comes late in the week and there is nothing of concern due Monday. In between comes the FOMC meeting and Treasury auctions that may influence bond trading. 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…

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Mortgage Rate Trends for Massachusetts Mortgage Rates – Updated on Aug 5 2010 12:09PM EST

Geof — Thu, 05 Aug 2010 16:09:08 +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 positive territory following early stock losses and unemployment news that was favorable for bonds. The stock markets are showing losses with the Dow down 36 points and the Nasdaq down 14 points. The bond market is currently up 12/32, which should improve this morning’s Massachusetts mortgage rates by approximately .250 of a discount point.

The Labor Department gave us last week’s unemployment figures early this morning. They announced that 479,000 new claims for unemployment benefits were filed last week. This was much higher than the 455,000 that analysts had expected, making this data good news to the bond market and mortgage rates. This data tracks only a single week’s worth of claims, so it usually has little impact on Massachusetts mortgage rates. However, today’s improvement in rates can partially be attributed to the surprise jump in claims.

The most important piece of data this week and arguably each month comes tomorrow morning. The Labor Department will post July’s Employment report early tomorrow morning. It gives us the U.S. unemployment rate, number of jobs added or lost during the month and the average hourly earnings reading. The ideal situation for the bond market is rising unemployment, a sizable loss of jobs and little change in earnings.

While the GDP is arguably the single most important report in general, it is posted quarterly rather than monthly like the Employment report. Tomorrow’s report is expected to show that the unemployment rate rose to 9.6% last month while approximately 85,000 jobs were lost. The unemployment rate probably will not be much of a factor unless it moved more than the 0.1% that is expected. However, due to the importance of these readings, we will most likely see quite a bit of volatility in the markets and Massachusetts mortgage rate tomorrow if they vary from forecasts.

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…

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