The Mortgage Interest Rate Lock Advisory for Brunswick ME for October 21, 2009
Here are some of the events affecting mortgage interest rates today in Brunswick, Maine.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.69 this morning - down 7/32 from yesterday's close.
The chart below shows today's price trend of the FNMA 30-Year 4.5% coupon:
The FNMA 30-Year 4.5% MBS coupon is currently trading at 100.59 - down 3/32 from its opening. Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. I expect that mortgage interest rates will be 0.375% - 0.625% worse in price this morning as compared to yesterday.
The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- The Federal Reserve Beige Book - this data will reveal the economic conditions in each of the 12 regions of the U.S. The Fed relies on this report at their Federal Open Market Committee (FOMC) meetings when they set their interest rate policy. The highlights of the Beige Book will be comments about the labor market and the retail sales. If the Beige Book provides evidence of economic growth from or concerns about inflation since the last release, then the result could be higher mortgage interest rates.
There are a number of quarterly earnings reports scheduled for release this week that could affect the stock markets. If the earnings reports are good or better than expected, then you can expect traders to sell bonds and mortgage backed securities and move those funds into stocks. If, on the other hands, earnings reports are worse than expected, then you can expect traders to sell stocks and move those funds into bonds as a safe-haven.
What's Happening With Mortgage Interest Rates Today:
Moderate volatility. Overall, expect the mortgage market to be heavily influenced mostly by the stock markets today.
My Mortgage Interest Rate Lock Advice for Today:
If I were considering financing/refinancing a home, I would...
- Lock if my closing was taking place within the next 7 days
- Lock if my closing was taking place between 8 and 30 days
- Float if my closing was taking place between 31 and 45 days
- Float if my closing was taking place between 46 and 60 days
This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers.
Get today's mortgage interest rates for your situation in Brunswick, ME.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB