Boston Massachusetts Mortgage Rate Update 9 / 10

Mortgage Market

Are the lowest Mortgage Rates behind us? We have had 3 weeks of gains wiped out in 4 bad days in the mortgage market. 4.375% on a standard 30 year fixed purchase or refinancing is still attainable however with higher costs. There is a very good chance that rates could trend higher in the month of September, it’s not to late to LOCK in a near all-time low rate in your are closing this month. We might have seen the lowest rates we’re ever gonna see, if that is the case, then those rates are already behind us so it doesn’t matter.

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

Economic Data

Friday’s bond market has opened in negative territory with no economic data to drive trading and a positive open in stocks. The Dow is currently up and the Nasdaq is up. The bond market is currently down, which should push this morning’s mortgage rates higher by approximately .250 of a discount point.

There are no relevant reports or events scheduled for today that may affect the bond market or mortgage rates. This leaves the stock markets to influence bond trading and mortgage pricing the remainder of the day. If the stock markets remain near current levels, mortgage rates should follow suit. However, a noticeable improvement in stocks could lead to an upward revision in rates later today.

Yesterday’s 30-year Bond auction did not go as well as Wednesday’s 10-year Note sale. The lackluster results did lead to some selling in bonds late yesterday. That caused some lenders to revise their rates slightly higher before closing. The 10-year Note sale gave us more of an indication of interest in mortgage-related bonds than the 30-year sale did, so yesterday’s lack of demand does not cause a great deal of concern. But, it could indicate that investors may have enough longer-term securities in their portfolio, or at the very least nearing that point. Therefore, we will be a little more cautious heading into the next round of auctions.

Next week brings us the release of a handful of relevant economic reports that are likely to impact mortgage rates. A couple of them are considered to be highly important to the markets and have the potential to cause sizable changes in rates. There is nothing of concern scheduled Monday, but the rest of the week includes a very important measurement of consumer spending (Tuesday) and two key inflation readings later in the week, in addition to a couple of moderately important releases. Look for more details on next week’s events in Sunday’s weekly preview.

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?

bc@SmarterBorrowing.com 617.771.5021

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