Mortgage Commentary for Current Connecticut Mortgage Rates
Monday’s bond market has opened down slightly due to stronger than expected economic news even though we are seeing selling in stocks. The Dow is currently down 81 points while the Nasdaq has lost 17 points. The bond market is currently down 3/32, which may push current Connecticut mortgage rates slightly higher than Friday’s morning pricing.
The Commerce Department announced late this morning that new orders for durable and non-durable goods fell 1.0% in January. This was a much smaller decline than the 1.9% that was expected, hinting at a stronger manufacturing sector than many had thought. This makes the data negative for bonds and Connecticut mortgage rates, but because it is considered to be only moderately important it has had a limited impact on this morning’s rates.
The rest of the week has three government economic reports scheduled, but only one is considered to be highly important. The other reports are moderately important to the markets, meaning they have the potential to affect Connecticut mortgage rates but usually don’t cause a noticeable change. The most important data comes at the end of the week, but sizable moves in stocks can impact bond trading and Connecticut mortgage rates any day.
Today’s early weakness in stocks is a good sign for bonds. The major stock indexes have been overdue for a pullback in my opinion, especially since they could not break and hold thresholds of 13,000 in the Dow and 3,000 for the Nasdaq. The Dow is below 12,900 at the moment. If stocks continue to slide with some momentum, we could see funds shift into bonds as a safe-haven, driving Connecticut mortgage rates lower.
There is nothing of relevance scheduled for tomorrow, but look for a fairly active week overall in the markets and Connecticut mortgage rates. The importance of the week’s data rises as the week’s progresses, ending with the almighty monthly Employment report Friday morning. That makes Friday the biggest of the week and we can label tomorrow as the best candidate for least important. Please be careful this week if still floating an interest rate, especially the latter part of the week.
Rate Lock Advice for Current Connecticut Mortgage Rates
If I were considering purchasing or refinancing a home and predicting likely Connecticut mortgage rates, 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 a general opinion of what I would do if I were considering whether to lock or float current Connecticut mortgage rates based on the current mortgage market. Your individual situation may be different. Contact me if you would like advice for your particular circumstances.
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