Mortgage Commentary for Current Connecticut Mortgage Rates
Monday’s bond market has opened in positive territory following early stock weakness. The Dow is currently down 92 points while the Nasdaq has lost 16 points. The bond market is currently up 17/32, which should improve current Connecticut mortgage rates by approximately .125 – .250 of a discount point over Friday’s morning pricing.
There is nothing of relevance scheduled for release today, leaving bonds and Connecticut mortgage rates to be influenced by stock trading. The rest of the week brings us the release of four pieces of relevant economic news in addition to the minutes from the most recent FOMC meeting.
The first important piece of data this week is April’s Retail Sales, which will be released at 8:30 AM ET tomorrow. It is an extremely important report for the financial markets since it measures consumer spending. Consumer spending makes up two-thirds of the U.S. economy, so this data can have a pretty significant impact on the markets. Current forecasts are calling for a 0.6% increase in sales from March to April. A weaker than expected level of sales should push bond prices higher and Connecticut mortgage rates lower Thursday morning as it would signal that economic activity may not be as strong as thought. However, a larger increase could fuel fears of economic growth that would lead to bond selling and higher Connecticut mortgage pricing.
April’s Consumer Price Index (CPI) will also be posted at 8:30 AM ET romorrow. It is similar to last week’s PPI report, but measures inflationary pressures at the more important consumer level of the economy. These results will be watched closely and could lead to significant volatility in the bond market and Connecticut mortgage pricing if they show any surprises. Current forecasts are calling for no change in the overall index and a 0.2% rise in the core data reading. The core data is the more important of the two readings because it excludes more volatile food and energy prices, giving analysts a more stable and reliable measurement of inflation.
Overall, it looks like we may see the most activity tomorrow with the two most important reports of the week scheduled. Wednesday could also be active while Friday is the best candidate for calmest day unless something unexpected happens. However, sizable gains or losses in the major stock indexes could influence bonds and Connecticut mortgage rates more than a good part of this week’s economic data can. Therefore, please maintain contact with your mortgage professional if still floating an interest rate.
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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