Mortgage Commentary for Current Connecticut Mortgage Rates
Wednesday’s bond market has opened in positive territory with stocks giving back some of yesterday’s rally. The Dow is currently down 64 points while the Nasdaq has lost 14 points. The bond market is currently up 7/32, but we will likely see little change or possibly a slight increase in current Connecticut mortgage rates due to weakness in bonds late yesterday.
There was nothing released this morning that was of relevance to Connecticut mortgage rates. As expected, bond prices are being influence by stock trading. We saw this yesterday as stocks extended their gains into afternoon trading. So, even though bonds are in positive ground this morning, they are simply erasing yesterday’s afternoon losses.
Tomorrow has the remaining economic reports that are scheduled this week. The first of three will be the weekly unemployment update from the Labor Department, who is expected to say that 375,000 new claims for unemployment benefits were filed last week. This would be a small decline from the previous week’s estimate of 380,000 initial claims. The higher the number of claims, the better the news for bonds and Connecticut mortgage rates because rising unemployment claims means the employment sector is weakening. However, since this data tracks only a single week’s worth of new claims, it usually takes a wide variance from forecasts for it to have a noticeable impact on Connecticut mortgage rates.
The second report of the day is March’s Existing Homes Sales numbers from the National Association of Realtors at 10:00 AM ET. This report also gives us an indication of housing sector strength and mortgage credit demand. It is considered to be moderately important to the markets, but can influence Connecticut mortgage pricing if it shows a sizable variance from forecasts. Ideally, the bond market would like to see a drop in home resales because a soft housing sector makes a broader economic recovery difficult. Analysts are expecting to see an increase in sales between February and March. The larger the increase, the worse the news for bonds and Connecticut mortgage rates.
The final report of the week will also be posted late tomorrow morning when the Conference Board releases their Leading Economic Indicators (LEI) for March. This data attempts to measure economic activity over the next three to six months. This is considered to be a moderately important report, so we may see a slight movement in rates as a result of this data. It is expected to show an increase of 0.2%, meaning it is predicting slight growth in economic activity over the next several months. A decline would be considered good news for the bond market and could lead to slightly lower Connecticut mortgage rates, assuming the housing report doesn’t show a significant surprise.
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…
Lock 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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