The Mortgage Interest Rate Lock Advisory for Lewiston ME for October 13, 2009
Here are some of the events affecting mortgage interest rates today in Lewiston, Maine.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.19 this morning - down 3/32 from Friday's close.
The FNMA 30-Year 4.5% MBS coupon is currently trading at 101.22 - up 1/32 from it's opening (as shown by the blue line). Last Friday, MBS closed down 19/32 for the day, and was 10/32 down for the week at 101.28. 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 0.25% - 0.50% worse in price this morning as compared to Friday.
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:
- There are no economic reports scheduled for release today.
The 30-year Bond auction yesterday did not go as well as 10-year auction on Wednesday. This led to a selling in mortgage backed securities yesterday afternoon that carried over to this morning.
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. Expect mortgage interest rates to rise following the lackluster sale of the 30-year Bond yesterday.
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.
For the best mortgage interest rates in Lewiston, ME, click here.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB