Boston Massachusetts Mortgage Rate Update 6 / 2

Mortgage Market

Mortgage Rates have improved a bit the past 24/48 hours and are back down to 2010 lows.  And finally, last weeks mortgage market gains were passed along by Banks after the Holiday weekend like they historically are.  I am in a LOCKing bias with the Jobs Data coming later this week.   If you think stocks will continue to sell then FLOAT for now, however if stocks rally mortgage rates will go up.

Should you refinance your mortgage?  Yes, get low mortgage rates before they go up, and this could be the last opportunity you have during this refinancing market. 

The 30 year conventional rate mortgage is back in the 4.625% to 4.875% range for well qualified borrowers.  You must have a  FICO credit score of 740 or higher, a loan to value of 80% or less (excluding Condos)  and pay closing costs including a discount point of origination.  These Mortgage Rates are awesome!

Inquire within for current Mortgage Rates  bc@SmarterBorrowing.com 617.771.5021

Economic Data

Wednesday’s bond market has opened in negative territory after this morning’s stock markets showed early gains. Stocks have continued to move higher, pushing the Dow up 89 points and the Nasdaq up 24 points. The bond market is currently down 8/32, which should push this morning’s mortgage rates higher by approximately .125 of a discount point.

There is economic data scheduled for release today that is relevant to mortgage rates. So, as expected, the stock markets are having the biggest influence on this morning’s bond trading and mortgage pricing. It appears that the major stock indexes have more room to improve, therefore, it would not surprise me to see another upward revision to mortgage rates later today.

Tomorrow brings us the release of three reports that may affect mortgage rates. The first is the revised 1st Quarter Productivity and Costs data that measures employee output and employer costs for wages and benefits. It is considered to be a measurement of wage inflation. It is believed that the economy can grow with low inflationary pressures when productivity is high. Last month’s preliminary reading revealed a 3.6% increase, but I don’t think this piece of data will have much of an impact on the bond market or mortgage pricing unless it varies greatly from its forecasted revised reading of 3.4%.

The second release of the day will come from the Commerce Department, who will post April’s Factory Orders data during late morning trading. This manufacturing sector report is similar to last week’s Durable Goods Orders release, but also includes orders for non-durable goods. It can cause some movement in the financial markets if it varies from forecasts by a wide margin, but it isn’t expected to cause much change in rates this month. Current forecasts are calling for an increase in orders of 1.7%.

The third report of the day may have a noticeable impact on the markets or be a non-factor depending on its results. The Institute for Supply Management will release its services index late tomorrow morning. It is expected to show a reading of 55.6, with the same principals as yesterday’s ISM manufacturing index. If this reading varies greatly from forecasts, we may see volatility in the markets and mortgage rates. However, if its results are in the general area of expectations, it will likely have no influence on the markets and mortgage pricing 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?

bc@SmarterBorrowing.com 617.771.5021

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

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