Mortgage Commentary for Current Connecticut Mortgage Rates
Monday’s bond market has opened in positive territory following mixed economic data and minor losses in stocks. The stock markets are starting the week in negative ground, but the 32 point loss in the Dow and the Nasdaq being down 18 points isn’t anything to be overly excited about. The bond market is currently up 6/32, which should improve current Connecticut mortgage rates by approximately .125 of a discount point over Friday’s morning pricing.
Unlike many Mondays, there was relevant economic data posted this morning. March’s Personal Income & Outlays was released early this morning, revealing a 0.4% increase in income and a 0.3% rise in spending. The income reading was slightly higher than forecasts, meaning consumers had more money to spend last month than many had thought. However, this was offset by the spending reading that fell just short of forecasts, indicating consumers actually spent less than expected. That makes the data neutral towards bond prices and Connecticut mortgage rates.
The rest of the week brings us four more economic reports that are relevant to mortgage rates. Two of those four are considered to be highly important to the financial and mortgage markets. In addition, there are several public speaking engagements by different regional Federal Reserve Presidents this week that may influence the markets. However, I suspect that the economic reports and significant movement in stocks will be the biggest factors in whether Connecticut mortgage rates move higher or lower this week.
The Institute for Supply Management (ISM) will post their manufacturing index for April late tomorrow morning. This is one of the first important economic reports released each month and gives us an indication of manufacturer sentiment. A reading above 50 means that more surveyed trade executives felt business improved during the month than those who felt it had worsened. This points toward more manufacturing activity and could hurt bond prices, pushing Connecticut mortgage rates higher. Analysts are expecting to see a reading of 53.0, which would be a slight decline from March’s level of sentiment. The lower the reading, the better the news for bonds and Connecticut mortgage rates.
Overall, I believe Friday will be the most important day of the week with the monthly Employment report being posted. It can easily erase the week’s accumulated gains or losses in Connecticut mortgage rates if it shows any surprises. Tomorrow can also be an active day for rates if the ISM index shows any surprises. The middle part of the week will likely be the calmest, but I still suggest proceeding cautiously if still floating an interest rate with the benchmark 10-year Treasury Note yield again below 2.00%. This would be a good week to maintain contact with your mortgage professional if you have not locked a rate yet.
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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