Welcome to Monday Mortgage Call, a weekly prognosis by Boston mortgage broker Brian Cavanaugh of where the all-important lending rates might be headed.
Overall, I am expecting Wednesday to be the most active day for mortgage rates with three economic reports and the FOMC minutes set for release; but Thursday could be a little volatile also. The calmest day will probably be Monday, while Friday should be a close second unless something unexpected transpires.
The yield on the benchmark 10-year Treasury note closed last week just above 2.7 percent, which appears to be somewhat of a support level for the market. That means there is more of a possibility of it moving higher than breaking below; and, since mortgage rates tend to follow bond yields, we could see higher mortgage rates before getting much of an improvement. Therefore, I strongly recommend proceeding cautiously if still floating an interest rate and closing in the near future.
As for whether you should lock in an interest rate now, I would:
LOCK if your closing was taking place within seven days…
LOCK if your closing was taking place between eight and 20 days…
LOCK if your closing was taking place between 21 and 60 days…
LOCK if your closing was taking place over 60 days from now…
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