MA mortgage rate lock

Massachusetts Weekly Mortgage Rate Lock Advisory

by Rich Vetstein on July 28, 2010

Our Mortgage Guy, Brian Cav, is back with his Massachusetts weekly mortgage rate report. JUMBO is the name of the game this week.

I have never seen Jumbo Mortgage rates as low as they presently are right now. Absolutely everyone with a loan amount of $523,750 or greater (depends on county) should be reaching out to their Mortgage Banker for updated mortgage pricing, etc. The new home sales helped the stock market post strong gains yesterday, so when stocks advance, their gains come at the expense of higher interest rates. MBS prices are holding steady down near record highs and mortgage rates are holding steady near record lows. This is all I got this week…  absolutely everyone under this beautiful summer sun should at least be attempting to refinancing your current home loan.

The lowest 30 year fixed mortgage rates remain in the 4.25% to 4.625% range. The standard mortgage rate with closing costs is  still at 4.50%, 1 discount point of origination presently can get you 4.375% for qualified borrowers. Borrowers must have a mid FICO credit score of 740 or better and a loan to value of 80% or less.

Inquire within for current Mortgage Rates or guidelines [email protected] 617.771.5021

Economic Data

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 and nasdaq down. The bond market is currently up, which will likely improve this morning’s 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.

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 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 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 mortgage pricing. Analysts are expecting to see little change from the previous week’s 464,000 new claims.

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 – FLOAT

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

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Weekly Mortgage Rate Lock Advisory: July 7, 2010

by Rich Vetstein on July 7, 2010

Our Mortgage Guy, Brian Cav, is back from vacation with his Massachusetts weekly mortgage rate report. Interest rates are still hovering around historic lows.

Mortgage Market

Mortgage Rates are still at all-time lows and there is no real economic news due out this week to make any changes in the markets.  The MBA Applications, Weekly Jobless Claims, and Fridays Wholesale Trade should all have minimal to no impact on Mortgage rates this shortened week.  I hope everyone had a fun and safe Holiday weekend.

The conventional 30 year fixed mortgage rates remain in the 4.375% and 4.625% range for well qualified borrowers. To get the lowest possible mortgage  interest rate on a conventional loan you must have a credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including one point loan discount fee.  If you are seeking a 15 year term, you should expect those rates to be in the 3.875% to 4.125% range with similar costs.

Mortgage Rates are slightly higher than the all time lows set last week, but rates continue to hold near the best levels ever. I see very little to gain by floating so I continue to favor locking all loans closing in the next 30 days.  In my personal pipeline, I have even locked a few clients on 45 day commitments to remove the risk of volatility.

Inquire within for current Mortgage Rates or guidelines [email protected] 617.771.5021

Economic Data

Wednesday’s bond market has opened in negative ground with no relevant economic news scheduled for release and the stock markets showing early gains. The Dow is currently up while the Nasdaq has gained 25 points. The bond market is currently down 6/32, but I believe we will still see a slight improvement in this morning’s mortgage rates due to strength late yesterday.

The stock markets opened strong yesterday also, but actually fell into negative ground during the day before closing with respectable gains. If the major stock indexes repeat that cycle, particularly closing well below current levels, we may see improvements in bonds this afternoon. Since it is an especially light week with no relevant data being posted today, this could lead to a downward revision to mortgage rates this afternoon.

However, the flip side of that scenario is if stocks extend this morning’s gains rather than retreat from their current levels. If the major stock indexes move higher, bonds could move lower later today. This would likely lead to an upward revision to mortgage rates this afternoon, but would probably be a minor adjustment.

The Labor Department will post weekly unemployment figures early tomorrow morning. This release usually has little influence on bond trading or mortgage rates, but with a lack of important data scheduled for release this week it may draw more attention than usual. Analysts are expecting to see that approximately 460,000 new claims for benefits were filed last week. The higher the total of new claims, the better the news for bonds and mortgage rates.

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 – FLOAT

If I was closing on a Home Mortgage in the next 30 to 60 Days – FLOAT

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

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Our Mortgage Guy, Brian Cav, is back with his Massachusetts weekly mortgage rate report, and his advice is to LOCK IN:

Brian Cav

The Stock Market is extending its gains and Mortgage Rates are starting to go up despite bad economical data coming from overseas. Yesterday afternoon we had a worsening pricing in Mortgage Markets because Greece had their credit rating cut by Moody’s to “junk.” Ouch. Floating your loan is very risky right now with investor optimism improving quickly. With the new Fannie Mae Loan Quality Initiative (eff. June 1st, 2010) please do not take out any new credit, extend any credit or have your credit pulled while applying for mortgage financing.  This is extremely important for all of those borrowers currently refinancing and looking to close June and July. Yes, you should be refinancing. The Massachusetts Mortgage Bankers Association says mortgage refinancing applications are up 21% the month of May.

The Conventional mortgage rate is still in the 4.625% to 4.875% range for well qualified borrowers. To get the best conventional mortgage pricing you must have a FICO score  of 740 or higher, and a 80% or less loan to value (1% discount point quoted with current rates).  The 15 year fixed conventional fixed mortgage is currently at all time lows.

Inquire within for current Mortgage Rates [email protected] 617.771.5021

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

If I was closing on a Home Mortgage in the next 60+ LOCK


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Mortgage Guy, Brian Cav, is back with his weekly interest rate report. He says while it’s been a “slow boring week for rates, ” rates remain at all time lows.

Mortgage rates are currently holding down by 2010 lows, the 15 year conforming hit a all time low earlier this week… but I do not expect them to stay down this long for much longer. It’s been a slow boring week for rates but I expect Fridays Retail Sales to make the Mortgage Markets volatile. I would suggest LOCKing in at these 2010 low rates in the next few days.

Brian Cav

The conventional rate mortgage remains in the 4.625% to 4.875% range for qualified borrowers, and for a 15 year fixed you should expect rates in the 4.125% to 4.375% . Well qualified borrowers should have a 740 FICO score of better and have a loan to value of less than 80%. Closing costs for this pricing would include 1% discount point of origination for both products.

FLOAT your rate for now? I find it difficult to turn down this current  mortgage market pricing. The only loans I maybe recommend floating are those that can be locked on a shorter commitment period in the next few days, certainly before Friday. If stocks rally soon be careful of mortgage rates going up as well.

Inquire within for current Mortgage Rates [email protected] 617.771.5021

Economic Data

Wednesday’s bond market opened in negative territory again following early stock strength. The stock markets are showing gains with the Dow up 120+ points and the Nasdaq up 30 points. The bond market is down 12/32 as investors shift funds into stocks. However, due to some improvements in bond prices late yesterday, we should see little change in this morning’s mortgage rates.

Fed Chairman Bernanke’s statement to the House Budget Committee was the only relevant news this morning. He reiterated similar comments made Monday evening that helped influence trading yesterday. He said this morning that the U.S. economic recovery is moving in the right direction and that the European financial crisis will have a “moderate” impact on it but will not derail it. He mentioned that the employment and housing sectors are still of concern but his words seem to have reassured the markets that all will be well eventually.

The Fed will post its’ Beige Book report at 2:00 PM ET this afternoon. This report is named simple for the color of its cover, but contains details about economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve to determine monetary policy during their FOMC meetings. If it shows much stronger economic activity than its last release, we could see mortgage rates rise this afternoon. Particularly if the report indicates inflation is growing.

We also have to watch for the results of today’s 10-year Treasury Note auction. Results the sale will be posted at 1:00 PM ET. If investor demand was high for the Notes, we may see bonds rally during afternoon trading, however, weak demand could lead to broader selling in bonds and an increase to mortgage rates.

FLOAT or  LOCK

If I was closing on a Home Mortgage in the next 0 to 15 Days – LOCK, FLOAT until Friday

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

If I was closing on a Home Mortgage in the next 60+ LOCK

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

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Weekly Mortgage Rate Lock Advisory For May 26, 2010

by Rich Vetstein on May 27, 2010

These days, every time I order a Greek salad, the feta cheese makes my stomach churn. I wonder if the Greek economic meltdown has something to do with it! Here’s our Mortgage Guy, Brian Cav, with his weekly Massachusetts mortgage rate report.

Mortgage Market

Brian Cav

Mortgage Rates have moved up from the 2010 lows that we had last week, this is  largely because of the modest stock rally and investors getting out of risky investments, “flight to quality,” These Greece issues, which are spreading throughout Europe, should keep mortgage rates down thru the summer, and not to mention North Korea is threatening military action against South Korea. Is it time to refinance out of that ARM mortgage? Yes, because LIBOR is rising. It’s time to get an updated mortgage rate quote.

The 30 year conventional rate mortgage remains in the 4.75% to 5% range for well qualified borrowers. To get the best mortgage pricing on a conventional mortgage you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point discount fee.

I am a huge fan of LOCKing in your mortgage interest rate right now. It would not matter to me if you were closing in one week or 60 days out. I would LOCK in immediately.

Inquire within for current Mortgage Interest Rates. [email protected] 617.771.5021

Economic Data

The bond market has moved lower following today’s 5-year Treasury Note auction. The stock markets have also given up a good portion of this morning’s early gains. Yesterday, the Dow was up 56 points after being up nearly 135 points earlier. The Nasdaq fell from earlier highs, and was up only 23 points. The bond market has extended yesterday morning’s losses, and was down 21/32. This will likely lead to an upward revision to this afternoon’s mortgage rates of approximately .125 – .250 of a discount point.

Yesterday’s economic data gave us mixed readings on the economy. The more important of the two was April’s Durable Goods Orders data that showed a 2.9% increase in new orders for big-ticket items last month. It also showed a sizable upward revision to March’s orders, indicating that the manufacturing sector was stronger than thought. However, if more volatile transportation related orders were excluded, we would have seen a 1.0% decline in orders. This was much weaker than expected, so overall the data can be considered neutral to slightly positive for the bond market and mortgage rates.

April’s New Home Sales data showed a much larger than expected increase in sales of newly constructed homes. This is negative for bonds, but the data usually has little influence on mortgage rates unless it varies greatly from forecasts. This report did show a sizable variance, but it appears that it is has not had much of an impact on today’s rates.

The first of two revisions to the 1st quarter Gross Domestic Product (GDP) will be released early tomorrow morning. The second revision to this report comes next month but isn’t expected to have much of an impact on the financial markets. The GDP is the sum of all goods and services produced in the U.S. and is considered to be the best indicator of economic growth. Last month’s preliminary reading revealed a 3.2% increase in the annual rate of growth. Analysts expect a slight upward revision to this reading with the consensus being a 3.3% rate of growth. If the upward revision is much stronger than expected, we may see the bond market react negatively and mortgage rates move higher.

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

If I was closing on a Home Mortgage in the next 60+ LOCK

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

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Weekly Mortgage Rate Lock Advisory, May 19, 2010

by Rich Vetstein on May 19, 2010

Brian Cav, Smarterborrowing.com

If it’s Wednesday, that means our weekly Massachusetts Mortgage Rate Report from our own Mortgage Guy, Brian Cav of Smarterborrowing.com. Take it away, Brian!

Mortgage Rates are currently staying and settling down near 2010 lows. I would have thought they would have come up a bit from last weeks close but they have not. Yes, now is absolutely the time to think about refinancing in you have not already. I would suggest LOCKing in at these current mortgage rates. I think it is a gamble if you do not. Remember, mortgage rates always rise faster than they fall.

The 30 year conventional rate mortgage remains in the 4.75% to 5.00% range for well qualified borrowers. To secure a 2010 low interest rate on a conventional mortgage you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point discount fee. Yes, there are options to finance without paying the discount point. If you are not planning on keeping your home for more than 5 years, you should consider a no cost loan or a Adjustable Rate Mortgage (5/1 ARM, 7/1 ARM or 10/1ARM). On a no cost loan, the Lender will pay the fees for you however you will pay a higher than par market rate. Or you can finance a ARM product were the rates are near all time lows if you know you will be in your current home for a specific amount of time.

Inquire within for current Mortgage Interest Rates. [email protected] 617.771.5021

Economic Data

Wednesday’s bond market initially opened in negative territory but has since erased those gains as stock prices started to fall. The stock markets are in selling mode again with the Dow down and the Nasdaq down. The bond market is currently up, which might improve this morning’s mortgage rates by approximately .125 of a discount point.

Today’s important inflation data gave us favorable results. The Labor Department reported that the Consumer Price Index (CPI) fell 0.1% last month when it was expected to rise slightly. Even better news was the core data reading that showed no change from March when it was expected to rise slightly. This means that inflationary pressures at the consumer level of the economy were lighter than thought. That is good news for rates because it makes long-term securities such as mortgage-related bonds more attractive to investors.

Later today, the minutes from the last FOMC meeting will be released. Market participants will be looking at how Fed members voted during the last meeting and any comments about inflation concerns in the economy. The goal is to form opinions about when the Fed may make a move to key short-term interest rates. The minutes will be released at 2:00 PM ET, so if there is a market reaction to them it will be evident during afternoon trading.

Tomorrow brings us the last relevant economic data of the week when April’s Leading Economic Indicators (LEI) are posted at 10:00 AM ET. This Conference Board report attempts to measure economic activity over the next three to six months. It is expected to show a 0.2% increase from March’s reading, meaning that economic activity is likely rise slightly during the next few months. A decline would be good news for the bond market and mortgage rates, while a larger increase could cause mortgage rates to inch higher tomorrow.

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

If I was closing on a Home Mortgage in the next 60+:  LOCK

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

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Mortgage Guy Brian Cav has his weekly Massachusetts mortgage rate lock advisory.

Mortgage Markets have gone up a bit the past 24 to 48 hours. The European bailout will have a ton to do with what happens with markets in coming weeks. Mortgage rates are going up and down based on the guidance they get from headline news and the stocks. With mortgage rates down near the low of the year, I love LOCKing all loans closing in the next 30 to 45 days. Borrowers closing in more than 30 to 45 days should consider paying the extra costs to secure a longer term lock. Most Lenders will charge a 0.25%  fee (based on your loan amount) to lock in your loan for more than 45 days. On a $300,000 loan, that is an extra cost of $750 which is a small price to pay over the life of your loan if rates do increase in the next 45 days. I think they certainly will.

The par 30 year conventional rate mortgage remains in the 4.75% to 5.00% range for well qualified borrowers. To secure a  interest rate on a conventional mortgage you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated 1 point discount fee. For consumers with lower FICO scores (700 and less) and higher loan to values, you should consider an FHA loan.

Inquire within for current Mortgage Interest Rates. [email protected] 617.771.5021

Economic Data

Wednesday’s bond market opened in negative territory following early stock strength. The stock markets are showing noticeable gains with the Dow and Nasdaq up. The bond market is currently down, but we still may see a slight improvement in this morning’s rates as a result of strength late yesterday afternoon.

10-year Treasury Notes will be sold today and could impact bond prices and mortgage rates. The 30-year Bond sale will take place tomorrow. Results of the auctions will be posted at 1:30 PM ET each day.

There is no relevant economic data scheduled for release tomorrow, except for weekly unemployment figures from the Labor Department. They are expected to announce that 440,000 new claims for unemployment benefits were filed. It will likely take a much larger or smaller figure for this report to affect mortgage rates tomorrow morning. I don’t expect this to have much weight.

The remaining three economic reports will be released Friday morning. This is when we will get April’s Retail Sales data (very, very, very important!), April’s Industrial Production (important) and May’s University of Michigan’s Index of Consumer Sentiment (important).

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

If I was closing on a Home Mortgage in the next 60+ LOCK

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

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Here’s our Mortgage Guy Brian Cav’s weekly report on mortgage rates. I also read an interesting blog post on how Iceland’s Eyjafjallajökull volcano has helped interest rates.

Mortgage rates went up a bit this morning. Why? Because the stock market rallied from an eight session low yesterday. This has been a pretty slow week in regards to economic data up to this point. The 30 year fixed is in the 4.875% to 5.25% range for qualified borrowers. You must have a mid FICO score of 740 or better and a loan to value below 80%. I am still in favor of LOCKing right now because I believe there are a few factors that are pressuring rates higher. The stock market seems likes it is only going to continue to go up plus there are more Treasury auctions on Thursday. These rates are low now… LOCK them in. Yes you should be thinking about refinancing!

Economic Data

Wednesday’s bond market has opened in positive territory despite a lack of economic news. The bond market is currently up, which should improve this morning’s mortgage rates pricing

It’s another quiet day in the markets, particularly in bonds. There is no relevant economic data being posted today. The stock markets are being driven mostly by earnings results. But those reports do not directly affect the bond market or mortgage rates.

Tomorrow morning brings us the release of March’s Producer Price Index (PPI). It will give us an important measurement of inflationary pressures at the producer level of the economy. The core data is more important to market participants because it excludes more volatile food and energy prices. If it shows rapidly rising prices, inflation fears may hurt bond prices since it erodes the value of a bond’s future fixed interest payments, leading to higher mortgage rates. However, a slight increase, or better yet a decline in prices, would be good news for the bond market and mortgage rates.

Late tomorrow morning, the National Association of Realtors will post March’s Existing Homes Sales numbers. A similar report to this one and actually the week’s least important data- March’s New Home Sales will be released Friday morning. Both are expected to show increases from February’s levels.

Also being released tomorrow are the weekly unemployment figures from the Labor Department. They are expected to show 450,000 new claims for benefits were filed last week, down considerably from the previous week. Generally speaking, a higher than expected number of claims would be considered favorable for bonds and mortgage rates.

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 Home buyer?
  • 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?

Inquire within for current Mortgage Interest Rates. [email protected] 617.771.5021

Credit: Bloomberg, Yahoo Finance, Mortgage News, MBS Quoteline, WSJ, NY Times

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Weekly Massachusetts Mortgage Rate Lock Report

by Rich Vetstein on April 19, 2010

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

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