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So What Could Bring Mortgage Rates Down?

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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, Friday is the key day of the week with the super-almighty employment report being posted, but Wednesday afternoon also has a chance to be pretty active. The least active day will likely end up being Tuesday; and Thursday doesn't have too much to be concerned about, either.

The benchmark 10-year Treasury Note yield closed just below 3 percent last week. I will be watching it very closely for mortgage rate direction over the next several weeks. It has been in a tight range between 2.95 and 3 percent. If we could get enough favorable news to push it below 2.95 percent, we should see a noticeable downward move in mortgage rates. Since mortgage rates follow bond yields, that would be good news for mortgage shoppers!

On the other hand, breaking above—and staying above—3 percent could indicate a sharp upward move in rates over the next couple of weeks. Therefore, please keep an eye on the markets and maintain contact with your mortgage professional if still floating an interest rate.

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…

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

FLOAT if your closing was taking place over 60 days from now…
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