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Thanksgiving Eve, That's the Day to Watch

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 busiest day for the bond market and mortgage rates, with three of the week's reports scheduled, including the most important one (durable goods), along with the seven-year note auction. There is nothing of importance scheduled for Tuesday, but Friday will likely be the calmest day of the week as many traders will be home for the long weekend rather than in the office working.

The benchmark 10-year Treasury note yield closed last week at 2.75 percent, so I will be watching it for mortgage rate direction also. If it does not make a move below 2.70 percent and remain there, I believe there is more likelihood of it moving towards 2.90 percent than there is of it staying in the 2.70 to 2.75 percent range. Since mortgage rates tend to follow bond yields, this would translate into higher rates. Therefore, please proceed 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…
· Our Monday Mortgage Call archive [Curbed Boston]