Mortgage Rate Advice

Rate Lock Advisory - Tuesday Mar. 31st



Tuesday's bond market has opened in positive territory again despite early stock gains. The stock markets are rebounding from yesterday's sell off with the Dow up approximately 100 points and the Nasdaq up 24 points. The bond market is currently up 6/32, which should improve this morning's mortgage rates by .125 of a discount point compared to yesterday's morning rates.

The Conference Board reported late this morning that March's Consumer Confidence Index (CCI) rose this month. The reading of 26.0 was a small increase from February's revised reading of 25.3, but was lower than forecasts had called for. However, the difference was not enough to affect mortgage rates.

The Institute for Supply Management (ISM) will release their manufacturing index late tomorrow morning. This important index gives us an important measurement of manufacturer sentiment by surveying trade executives. A reading below 50 means more surveyed executives felt business worsened during the month than those who said it had improved. This month's report is expected to show a reading of 36.0, which would be a slight increase from February's reading of 35.8. This means that analysts think business sentiment remained close to last month's level.

February's Factory Orders will be posted early Thursday morning. This data is similar to last week's Durable Goods Orders report, except that this report includes orders for both durable and non-durable goods. It is also the least important of this week's four reports. Unless it varies greatly from forecasts of a 0.3% decline, I suspect that it will be a non-factor in the mortgage market, especially with Friday's Employment report being posted.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... 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.


©Mortgage Commentary 2009

Applying for a Massachusetts Mortgage? Please note that if you have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that rate. It is very difficult to predict the market in these very volatile times. Most lenders have a rate renegotiation policy. Contact me for details.