The Mortgage Interest Rate Lock Advisory for Sanford ME for October 2, 2009
Here are some of the events affecting mortgage interest rates today in Sanford, Maine.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened up 6/32 at 101.92.
The price of the FNMA 30-Year 4.5% MBS coupon closed up 17/32 yesterday at 101.75 (as shown by the white line). MBS is currently trading up 3/32 at 101.84 (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and mortgage interest rates come down with it. I expect that mortgage interest rates will be 0.0% - 0.125% better in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Employment Report for September - the unemployment rate increased to 9.8% as 263,000 additional non-farm jobs were lost - much greater than the 170,000 decline analysts expected. There was a 0.1% increase in hourly earnings; analysts were expecting a 0.2% increase. The readings are weaker than expected readings; however the mortgage interest rates did not react as expected.
- Factory Orders Report for August - factory orders fell 0.8% in August - analysts were expecting an increase of 1.0% - and is down from the 1.2% increase the previous month. This report is posted by the Commerce Department, and is similar to the Durable Goods Orders report released last week, but includes orders for non-durable goods. It shows that the manufacturing is not as strong as thought. However, it did not have much of an impact on mortgage interest rates.
What's Happening With Mortgage Interest Rates Today:
Moderate Volatility. Overall, look for some volatility in the mortgage market today.
There's only a couple of economic reports scheduled for release next week, so look for the mortgage market to be heavily influenced by the stock markets. Look for more details on next week's events and recommendations on Monday.
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
- Float 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 Sanford, ME, click here.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB