Best Massachusetts Mortgage Rates Blog

Courtesy of the Massachusetts Mortgage Broker

Mortgage bonds finished the week strong by breaking above the 200-day moving average last Friday for the first time in a month fueled by tame inflation reports and a falling stock market.

The markets begin this week closed on Monday in observance of the Martin Luther King holiday. The week is light in terms of the number of economic reports scheduled for release. The first reports come Wednesday leading with the Producer Price Index (PPI) report which measures inflation on the wholesale level and the Housing Starts and Building Permits reports which give us a read on the housing market.

Thursday brings us manufacturing news in the form of the Philadelphia Fed Report as well as the weekly Initial Jobless Claim report.

In the absence of news until Wednesday, look for mortgage bonds to be influenced primarily by the cross flow of money between the stock and bond markets. Wednesday's PPI report will be a market mover for mortgage rates for the worse (higher) if it does not support the tame inflation readings of late.

However if mortgage bonds can manage to stick above the 200-day moving average, there may be some room for improvement in Massachusetts mortgage rates however small.