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Mortgage Rates Down to 2014 Lows, But What Next?

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, Tuesday or Thursday will probably be the most active day for mortgage rates, with some key economic data being posted both days. The least active day will likely be today, although we could see last Friday's afternoon strength extend into Monday's early trading. That would be good news for mortgage rates as many lenders already improved rates during afternoon trading Friday. Mortgage rates are down to 2014 lows!
The stock markets, which I believe are due for a pullback, also can be a big influence on bond trading and mortgage pricing any day (stock weakness should equate to bond strength). I still like what I see in bonds right now even after Friday's rally, and would not be surprised to see further gains that drive the benchmark 10-year Treasury note yield and mortgage rates lower. However, this week's data is important enough to reverse last week's downward move, so while the overall tone in the bond market is positive, you should still maintain contact with your mortgage professional if still floating an interest rate in case that changes.

As for whether you should lock in an interest rate now, I would:

LOCK if my closing was taking place within seven days…

LOCK if my closing was taking place between eight and 20 days…

FLOAT if my closing was taking place between 21 and 60 days…

FLOAT if my closing was taking place more than 60 days from now…
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