Boston Massachusetts Mortgage Rate Update 3 / 2

Mortgage Market

The bond market is currently down 6/32, which will likely push this morning’s mortgage rates higher by approximately .250 of a discount point. I would expect Mortgage Rates increase later in the week with the two reports coming out on Thursday/Friday. LOCK your Mortgage Interest Rate in now if purchasing or refinancing.

Economic Data

Tuesday’s bond market has opened in negative territory following early stock gains. The stock markets are extending yesterday’s gains with the Dow up 40 points while the Nasdaq has gained 11 points.

There is no relevant economic data scheduled for release today, leaving the stock markets to drive bond trading and mortgage rates today. If the stock markets extend their current gains, we may see bond prices fall and mortgage rates rise this afternoon. If they give back their early gains, bonds could move into positive ground, leading to downward revisions to mortgage pricing.

The Fed Beige Book will be posted at 2:00 PM ET tomorrow. There is no important data being posted during morning hours. The Beige Book details economic activity throughout the country by region. The Fed relies heavily on this data during their FOMC meetings, so look for a potential reaction during afternoon trading. It probably will not cause a major sell off in the stock or bond markets, but could cause enough movement in bond prices to possibly improve or worsen mortgage rates slightly if it reveals any significant surprises.

There are two reports scheduled for release Thursday that could affect mortgage rates. They are a quarterly productivity index and a measurement of manufacturing sector strength. Neither are considered highly important, but can influence bonds trading enough to affect 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

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.

bc@SmarterBorrowing.com 617.771.5021

Credit: Bloomberg, Yahoo Finance, Mortgage News, MBS Quoteline