Mortgage Rate Forecast: Lew Corcoran - Offering Reverse Mortgages, and FHA, VA, and USDA Loans (Star Mortgage® - Serving Massachusetts and Florida)

Trend and Forecast in Mortgage Rates on July 30, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 102.09 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 102.56 - up 9/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be up to 0.250 points better in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-30-2010 to 7-30-2010:

Economic Reports, News, and Events Affecting Mortgage Rates Today:

• Preliminary Reading of the 2nd Quarter Gross Domestic Product (GDP) - the GDP in the 2nd Quarter of 2010 grew at an annualized rate of 2.4%, slightly less than expected, and much less than the 5.4% growth rate in the 4th Quarter of 2009 and the 3.7% growth rate of the first quarter of 2010. So far, this has been a jobless recovery, and weekly unemployment in recent weeks has continued at just above the 450,000 level. As confidence remains low and unemployment remains high, it's not expected that consumers will be purchasing more goods again any time soon. While significant, the data did not have an impact on the mortgage market or mortgage rates this morning.
  
• Employment Cost Index (ECI) - is up 0.5% for the 2nd quarter of 2010, slightly more than the 0.4% increase that was expected. The ECI measures the costs of employee wages and benefits, this providing us with an indication of the threat of wage inflation. Wages & salaries rose 0.4% while benefits rose 0.6%. The year-over-year rate for wages & salaries is up 1.8%. The ECI report did not have an impact on the mortgage market or mortgage rates this morning.
  
• University of Michigan's Index of Consumer Sentiment - came in with a reading this morning of 67.8, a little better than expected, but still down significantly from April's and May's readings. The past 3 readings were 66.5 in June, 75.5 in May, and 73.3 in April. This index measures consumer willingness to spend and can usually have enough of an impact on the financial markets to change mortgage rates. This report indicates that consumers are not very likely to make many purchases. The consumer sentiment report did not have an impact on the mortgage market or mortgage rates this morning.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Forecast:

Mortgage rates are at their historic lows - they haven't been this low since the early 1950s - and continue to go lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought. It also appears that banks in Europe are not as bad off as previously thought. Mortgage rates could head up soon as the markets begin to correct themselves. As such, I would not take too much of a chance in waiting for even lower mortgage rates.

If you're happy with the mortgage rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. It's better to have locked when you should have floated than it is to float when you should have locked.

Are you in need of a mortgage to purchase a home? Or want to refinance an existing mortgage into a lower permanent fixed rate? Or want to take cash out of the equity of your home? Or consolidate debt and reduce the monthly bills? Then be sure to request a mortgage rate quote today!

Trend and Forecast in Mortgage Rates on July 29, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 102.09 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 101.97 - down 4/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be up to 0.125 points worse in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-29-2010 to 7-29-2010:

Economic Reports, News, and Events Affecting Mortgage Rates Today:

• Jobless Claims - 457,000 new claims for unemployment were filed last week, 3,000 less than expected, and 11,000 less than the upwardly revised 468,000 claims filed the previous week. The four-week average for unemployment is fell by 4,500 to 452,500 while continuing claims for the week of July 17 rose by 81,000 to 4.565 million. All signs indicate the economy has been recovering of late, but the jobless rate remains stubbornly high. This data is usually not considered to be very important to the mortgage market and had no effect on mortgage rates this morning.

In other news, the Treasury Dept. will be auctioning $29 billion in 7-Year Notes today. The Notes are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Forecast:

Mortgage rates are at their historic lows - they haven't been this low since the early 1950s. They could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought. It also appears that banks in Europe are not as bad off as previously thought. Mortgage rates could head up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.

If you're happy with the mortgage rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. It's better to have locked when you should have floated than it is to float when you should have locked.

Are you in need of a mortgage to purchase a home? Or want to refinance an existing mortgage into a lower permanent fixed rate? Or want to take cash out of the equity of your home? Or consolidate debt and reduce the monthly bills? Then be sure to request a mortgage rate quote today!

Trend and Forecast in Mortgage Rates on July 28, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 101.84 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 101.89 - up 2/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be about the same in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-28-2010 to 7-28-2010:

Economic Reports, News, and Events Affecting Mortgage Rates Today:

• Durable Goods Orders Report - there was an overall 1.0% decline in new durable goods orders in June, worse than the 1.0% rise that was expected. This follows a 0.8% decline in May, and increases in each of the previous 5 months. When the transportation component is excluded, new durable goods orders fell 0.6% which follows a 1.2% increase in June. Year-on-year, overall new orders for durable goods are up 15.9%, and follows a 15.2% increase in April. This data is usually not considered to be very important to the mortgage market and had no effect on mortgage rates this morning.

In other news, the Beige Book will be released at 2 pm this afternoon. The Beige Book is released two weeks ahead of the Federal Open Market Committee (FOMC) monetary policy meetings, and the Fed relies heavily on this data during their FOMC meetings. Look for a potential market reaction to the release of the Beige Book during afternoon trading hours.

The Treasury Dept. will be auctioning $37 billion in 5-Year Notes today. The Notes are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Forecast:

Mortgage rates are at their historic lows - they haven't been this low since the early 1950s. They could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought. It also appears that banks in Europe are not as bad off as previously thought. Mortgage rates could head up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.

If you're happy with the mortgage rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. It's better to have locked when you should have floated than it is to float when you should have locked.

Are you in need of a mortgage to purchase a home? Or want to refinance an existing mortgage into a lower permanent fixed rate? Or want to take cash out of the equity of your home? Or consolidate debt and reduce the monthly bills? Then be sure to request a mortgage rate quote today!

Trend and Forecast in Mortgage Rates on July 27, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 101.81 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 101.72 - up 3/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be up to 0.125 points worse in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-27-2010 to 7-27-2010:

Economic Reports, News, and Events Affecting Mortgage Rates Today:

• Consumer Confidence Index (CCI) - consumer confidence for July fell 50.4, and is worse than the 51.0 reading that was expected. The weakness is attributed mostly to the lack of job prospects and income. The previous readings were 52.9 in May, 63.3 in May and 57.9 in April. Posted by the Conference Board, this measures consumer willingness to spend. As a comparison, a reading of 80 or better is considered a signal of economic health. Retail sales typically move in tandem with consumer optimism. Because consumer spending makes up two-thirds of the U.S. economy, any related data is watched closely by market traders and can have a significant influence on the mortgage market. If consumers are less confident in their personal financial situations, they are less likely to make large purchases. Because of the lower CCI readings, this report led to improved mortgage rates this morning.

In other news, the S&P Case-Shiller Home Price Index  rose 1.2% in May, reflecting an increase in home price as homebuyers took advantage of tax incentives. On a year-on-year basis, home prices have increased an average 5.4% nationwide. The report shows that prices of homes are holding despite the end of tax incentives. However, it does not show that the housing market is in any type of recovery.

The Treasury Dept. will be auctioning $38 billion in 2-Year Notes today. The Notes are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Forecast:

Mortgage rates are at their historic lows - they haven't been this low since the early 1950s. They could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought. It also appears that banks in Europe are not as bad off as previously thought. Mortgage rates could head up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.

If you're happy with the mortgage rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. It's better to have locked when you should have floated than it is to float when you should have locked.

Are you in need of a mortgage to purchase a home? Or want to refinance an existing mortgage into a lower permanent fixed rate? Or want to take cash out of the equity of your home? Or consolidate debt and reduce the monthly bills? Then be sure to request a mortgage rate quote today!

Trend and Forecast in Mortgage Rates on July 26, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 101.75 this morning - the same as Friday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 101.88 - up 4/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be up to 0.125 points better in price this morning as compared to Friday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-26-2010 to 7-26-2010:

Economic Reports, News, and Events Affecting Mortgage Rates Today:

• New Home Sales - rose more than 23% in June to an annualized rate of 330,000 homes - 20,000 more than expected - after falling more than 36% in May. Analysts were expecting to see an annualized rate of 310,000 homes. In addition, the inventory of new homes on the market fell to a 7.6 month supply. And, the average price of new homes fell 1.4% to $213,400. Normally, this data did not have much of an impact on the mortgage market this morning.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Forecast:

Mortgage rates are at their historic lows - they haven't been this low since the early 1950s. They could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought. It also appears that banks in Europe are not as bad off as previously thought. Mortgage rates could head up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.

If you're happy with the mortgage rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. It's better to have locked when you should have floated than it is to float when you should have locked.

Are you in need of a mortgage to purchase a home? Or want to refinance an existing mortgage into a lower permanent fixed rate? Or want to take cash out of the equity of your home? Or consolidate debt and reduce the monthly bills? Then be sure to request a mortgage rate quote today!

Trend and Forecast in Mortgage Rates on July 23, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 101.84 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 101.94 - up 3/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be about the same in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-23-2010 to 7-23-2010:

Economic Reports, News, and Events Affecting Mortgage Rates:

• There are no economic reports scheduled for release today.

In other news, the Treasury Dept will be auctioning $42 billion in 2-Year notes, $40 billion in 5-Year notes, and $31 billion in 7-Year Notes for a total of $78 billion next week. The Notes and Bonds are used to finance the massive government debt. The results of these auctions could affect mortgage rates next week.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Forecast:

Mortgage rates are at their historic lows - they haven't been this low since the early 1950s. They could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought. Mortgage rates could head up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.

If you're happy with the mortgage rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. It's better to have locked when you should have floated than it is to float when you should have locked.

Are you in need of a mortgage to purchase a home? Or want to refinance an existing mortgage into a lower permanent fixed rate? Or want to take cash out of the equity of your home? Or consolidate debt and reduce the monthly bills? Then be sure to request a mortgage rate quote today!

Trend and Forecast in Mortgage Rates on July 22, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 102.06 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 102.06 - the same as its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be about the same in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-22-2010 to 7-22-2010:

Economic Reports, News, and Events Affecting Mortgage Rates:

• Jobless Claims - 464,000 new claims for unemployment were filed last week, 14,000 more than expected, and 37,000 more than the downwardly revised 427,000 claims filed the previous week. The four-week average for unemployment is 456,000 while continuing claims for the week of July 10 rose by 223,000 to 4.567 million. All signs indicate the economy has been recovering of late but without much of an increase in jobs. This data is usually not considered to be very important to the mortgage market and had no effect on mortgage rates this morning.
  
  
• Leading Economic Indicators (LEI) - fell 0.2% in June as expected. This follows a 0.4% gain in May and a 0.1% decline in April. This Conference Board report attempts to predict economic activity over the next three to six months. This report indicates that the overall economic outlook is still uncertain at best. This report had no impact on the mortgage market or mortgage rates this morning.
  
  
• Existing Home Sales Report - released by the National Association of Realtors (NAR), this report provides us with a measurement of housing sector strength and mortgage credit demand. Existing home sales fell 5.1% in June to an annualized rate of 5.37 million homes. The inventory of unsold homes rose to an 8.9 month supply which could lead to a further decrease in market values. While significant, this report had no impact on the mortgage market or mortgage rates this morning.

In other news, the Treasury Dept will announce later this morning the terms of the Notes and Bond auctions scheduled for next week. The Notes and Bonds are used to finance the massive government debt, and the results of these auctions could affect mortgage rates next week.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Lock Advice:

Mortgage rates are at their historic lows - and haven't been this low since the early 1950s. They could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought, and rates could begin to head up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.

If I were financing a home or refinancing a mortgage today, I would:

• Lock if my closing was taking place within 7 days
• Float if my closing was taking place between 8 and 15 days
• Float if my closing was taking place between 16 and 30 days
• Float if my closing was taking place more than 30 days from now

Be sure to check out today's mortgage rates.

Trend and Forecast in Mortgage Rates on July 21, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 101.62 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 101.62 - the same as its its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be about the same in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-21-2010 to 7-21-2010:

Economic Reports, News, and Events Affecting Mortgage Rates:

• There are no economic reports scheduled for release today.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Lock Advice:

Mortgage rates are at their historic lows - and haven't been this low since the early 1950s. They could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought, and rates could begin to head up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.

If I were financing a home or refinancing a mortgage today, I would:

• Lock if my closing was taking place within 7 days
• Float if my closing was taking place between 8 and 15 days
• Float if my closing was taking place between 16 and 30 days
• Float if my closing was taking place more than 30 days from now

Be sure to check out today's mortgage rates.

Trend and Forecast in Mortgage Rates on July 20, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 101.61 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 101.77 - up 5/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be up to 0.125 points better in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-20-2010 to 7-20-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Housing Starts - fell 5% in June to an annualized rate of 549,000 units, and is much worse than expected. Housing starts rose 3.9% in April and 5.0% in March, but fell 14.9% in May. Permits for new constructions rose 2.1% in June and follows a 5.9% decline in May and a 10.9% decline in April. Usually, this report has little to no impact on the mortgage market. However, this report led to lower mortgage rates this morning.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Lock Advice:

Mortgage rates are at their historic lows - and haven't been this low since the early 1950s. They could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought, and rates could begin to head up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.

If I were financing a home or refinancing a mortgage today, I would:

• Lock if my closing was taking place within 7 days
• Float if my closing was taking place between 8 and 15 days
• Float if my closing was taking place between 16 and 30 days
• Float if my closing was taking place more than 30 days from now

Be sure to check out today's mortgage rates.

Trend and Forecast in Mortgage Rates on July 19, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 101.88 this morning - the same as Friday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 101.75 - down 4/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be up to 0.125 points worse in price this morning as compared to Friday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 6-19-2010 to 7-19-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• There are no economic reports scheduled for release today.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Lock Advice:

Mortgage rates are at their historic lows - and haven't been this low since the early 1950s. They could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought, and rates could begin to head up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.

If I were financing a home or refinancing a mortgage today, I would:

• Lock if my closing was taking place within 7 days
• Float if my closing was taking place between 8 and 15 days
• Float if my closing was taking place between 16 and 30 days
• Float if my closing was taking place more than 30 days from now

Be sure to check out today's mortgage rates.