Mortgage Market Update

Mortgage Market Commentary

Mortgage backed securities (MBS) prices have fallen sharply (rates higher) as the Fed prepares for its 4th outright purchase of Treasuries as part of its effort to lower borrowing costs and stronger than expected economic reports are released; FNMA 4.0% coupon 100.59bps, -13bps and the low of the day. The effort to lower mortgage rates hasn't yet ignited home buying but it has definitely caused a surge in refinancing (+3.7% % 79% of all applications), meaning fewer foreclosures and less homes weighing on supply. Challenger Job-Cut Report announced layoffs fell back for a second straight month to 150k in March vs 185k in February and down from January's peak of 242k. ADP Employer Services gauge drop of minus 742k workers was larger than expected, pointing to no relief in sight for labor market. ISM Mfg Index edged higher in February to a level only modestly above December's record low, indicating little improvement in the near term. Construction Spending fell again, but not as much as expected in February, with weakness in private residential outlays. Pending Home Sales rose 2.1% from a record low as buyers took advantage of deeply discounted prices and low interest rates pointing to momentum for the housing sector going into the key months of April and May.

Massachusetts Mortgage Rates at 52 year Lows! Lock in a low fixed rate Refinance Mortgage Loan.