We’re pleased to welcome back our resident Mortgage Guy Brian Cav with his popular weekly Massachusetts Weekly Mortgage Rate Lock Report. (There was a delay in posting this–Brian wrote it last Wednesday–Sorry!).
Way to much to lose than to gain right now with Mortgage Interest Rates! I still like LOCKing in your Mortgage Rate very soon, especially if you are closing in the next 30 days. I just think there is so much volatility within the Mortgage markets right now… over the past two weeks I have seen mid day price changes almost every day, that’s unheard of. Mortgage Rates started off the week doing the same thing it did last week… recovering. Hopefully you gained some back on the rally late last week and earlier this week and LOCKed your rate in.
Inquire within for current Mortgage Interest Rates. [email protected] 617.771.5021
Economic Data
Wednesday’s bond market has opened in negative territory following the release of stronger than expected consumer spending data. The bond market is currently down, which will likely push this morning’s mortgage rates higher by approximately .25 of a discount point.
This morning’s economic data actually gave us mixed results. The Commerce Department said that sales at the retail level of the economy rose 1.6% last month, exceeding forecasts. This is considered negative news for bonds and mortgage rates because consumer spending makes up two-thirds of the U.S. economy. This makes bonds less appealing and pushes mortgage rates higher.
March’s Consumer Price Index (CPI) was today’s second release, but it gave us good news. The Labor Department reported that the overall index rose 0.1% as it was expected to do. The good news came in the more important core data reading that excludes more volatile food and energy prices. That can be considered quite favorable for bonds, but the sales data seems to be taking center stage this morning.
The Federal Reserve will post its Fed Beige Book report at 2:00 PM ET this afternoon. This report is named simply after the color of its cover and details economic conditions throughout the U.S. by region. Since the Fed relies heavily on the contents of this report during their FOMC meetings, its results can have a fairly big impact on the financial markets and mortgage rates if it reveals any significant surprises. Generally speaking, signs of strong economic growth or inflation rising would be considered negative for bonds and mortgage rates.
The Industrial Production and Consumer Sentiment are not extremely important Data & Reports mortgage mortgage rates coming out Thursday and Friday of this week.
FLOAT or LOCK
If I was closing on a Home Mortgage in the next 0 to 15 Days – LOCK
If I was closing on a Home Mortgage in the next 15 to 30 Days – LOCK
If I was closing on a Home Mortgage in the next 30 to 60 Days – LOCK/FLOAT – Tough Call
If I was closing on a Home Mortgage in the next 60+ FLOAT
This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
- Are you a possible Massachusetts First Time Homebuyer?
- Do you have a Real Estate client inquiring about current Mortgage Rates?
- Do you have any Refinancing questions?
- Should you be thinking about Refinancing out of your ARM (Adjustable Rate Mortgage)?
- Have your Real Estate clients been Pre Approved?
[email protected] 617.771.5021
Credit: Bloomberg, Yahoo Finance, Mortgage News, MBS Quoteline, WSJ, NY Times
