Mortgage Rate Forecast: November 2009

The unprecedented real estate bubble the nation just experienced was partly created by the credit rating shops that were tasked to value mortgage-backed securities, or MBS. The three large agencies doing that are Fitch Ratings, Moody's Investors Service and Standard & Poor's. The ratings the three arrived at were then attached to MBS issued by Wall Street firms and subsequently offered to investors who were seeking to invest money based on their own risk preferences. Obviously what the large investors world over were seeing made them confident that MBS were sound and worth acquiring, so they bought boatloads of them, stoking the fire under the housing bubble even more.

Las Vegas mortgage recipients, like those in the other seriously mauled areas of Arizona, California and Florida, were caught up in this frenzy and are now paying dearly for it.

Ever since the home loan and real estate market implosion there has been talk about how these ratings actually were sugar-coated and inaccurate, giving investors false impressions on their true value. Naturally the three agencies under scrutiny are adamantly defending their business practices.

Ohio attorney general has now filed a lawsuit against these three agencies on behalf of five Ohio public employee pension and retirement funds, claiming that the MBS ratings were inflated, often giving triple-A scores to mortgage-backed securities that in fact were rather risky. Moreover, the issuers of these bonds themselves, the lovable Wall Street crowd, were paying hefty fees for the ratings, creating an apparent conflict of interest issue. Conceivably the more fees a Wall Street issuer paid, the better an MBS rating would be.

The lawsuit seems to have decent merit now that the housing market has largely tanked and those MBS have lost most of their value, showing that in fact they were not quite triple-A vehicles but rather the high-risk variety. The Ohio attorney general has already filed seven other lawsuits against financial and investment companies since the economy turned sour and has collected thus far $2 billion in damages. This then isn't his first rodeo, so evidently he's onto something everybody should be paying attention to.

It just makes people wonder why Washington mortgage industry regulators are still sitting on the sidelines. This appears to be what they should be keeping an eye on and taking corrective action when needed. Does Wall Street have too much influence there? Well, at least some of the states have taken the initiative seeking to make the marketplace more responsible for its greedy and deceptive actions.

When the Southern Nevada - including Southern Highlands, Summerlin, Henderson, North Las Vegas, Anthem, Mountains Edge and Green Valley - housing market tripped into a free fall it was a foregone conclusion on many lips that scam artists would soon surface to try take advantage of the situation. And have they ever. What the local media has reported on the magnitude of the issue is undoubtedly only a tip of the iceberg. This, of course, isn't only a Las Vegas problem either, it covers the whole nation.

The scam artists generally employ a few basic practices that have all too often worked on unsuspecting homeowners facing mortgage payment challenges. One of them is the promise that the shady operator guarantees to put a halt to a foreclosure or to modify a home loan. Another is where he requests a large advance fee. They also like to ask for the borrower to stop paying the mortgage lender and send the payments to them instead. All of these are red flag events for homeowners thinking about foreclosure rescue or home loan modification.    

In addition, some operators will brag about their excellent track record and pledge to make refunds in case they fail to deliver the goods. And then there are those who say they are affiliated with the government or the mortgage company in question, when they are not. It's important to check on the legitimacy of any foreclosure rescue shop or home loan modifier before engaging them.

Because mortgage-related scams just continue gaining speed the FTC, or Federal Trade Commission, has launched a new program to attempt to slow things down. It's called Operation Stolen Hope. It was recently announced in a press conference held in Las Vegas, one of the cities most affected by the housing collapse where many hustlers have set up shop to ply their slimy trade. FTC is actually joining forces with at least 25 state attorneys general to thwart these deceptive, fraudulent and unfair business practices the scammers like to pull off. 

Operation Stolen Hope must be the result of ever increasing amount of mortgage borrower complaints. What FTC has done so far obviously hasn't been enough. Sometimes people wonder why regulators have to receive thousands of complaints before they start taking their mandate seriously. Why not do their job right from the get-go so there won't be that many disgruntled mortgage borrowers to make those breathless phone calls? Anyway, if FTC has the resources, organization and will it can make a big difference on the struggling homeowners' behalf.

How Financial Markets Really Work

The financial markets are closed today in observance of Thanksgiving Day. In the absence of any financial activities, I thought I'd provide this short video on how financial markets really work. Enjoy.

---

	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

---

 

The Mortgage Interest Rate Lock Advisory for Harwich MA for November 25, 2009

Here are some of the events affecting mortgage interest rates today in Harwich, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.31 this morning - the same as 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 102.31 - the same as it's opening. 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 about the same in price this morning as compared to yesterday.

Recent Activity in Mortgage Backed Securities:

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:

• Durable Goods Orders fro October - new orders for durable goods fell 0.6% in October, and is much worse than the 0.5% increase that was expected. This follows a 1.0% increase in September.  This data helps us measure manufacturing strength by tracking orders for big-ticket items, but is known to be quite volatile from month-to-month. This report will help the mortgage market keep mortgage interest rates down this morning.
  
  
• Personal Income and Outlays Report for October - as expected, there was a 0.2% increase in income in October. There was a 0.7% increase in consumer spending, slightly more than expected. Income was unchanged the previous month while spending fell 0.5%. This data is thought to measure consumers' ability to spend and their current spending habits. This is important because consumer spending makes up two-thirds of the U.S. economy. This report had almost no impact on the mortgage market and will also help keep mortgage interest rates down this morning.
  
  
• Revised University of Michigan Index of Consumer Sentiment reading for November - the reading is up from 66.0 the previous month to 67.4. Analysts were expecting to see a reading of 67.0. The University of Michigan's Consumer Survey Center questions 500 households each month about their financial conditions and attitudes about the economy. However, this data will usually has little to no impact on the mortgage market and mortgage interest rates.
  
  
• New Home Sales Report for October - new home sales rose 6.2% in October to an annualized rate of 430,000, and is much higher than the annualized rate of 430,000 sales that were expected. This follows an annualized rate of 402,000 new home sales the previous month. In addition, the inventory of new homes on the market fell to a 6.7 month supply. This means that if no other new homes come on the market, it will take 6.7 months to sell the current inventory of homes. This data will usually has little to no impact on the mortgage market, but higher than expected new home sales drove prices of mortgage backed securities down 2/32 this morning. This should not have an impact on mortgage interest rates.
  
  
• Jobless Claims - claims for unemployment fell sharply last week to 466,000, mush less than analysts expected. It's also the lowest level since September of last year, and is less than the 505,000 filed in each of the previous 2 weeks. The four-week average fell by 16,500 to 496,500. Continuing claims for unemployment also declined - it fell by 190,000 to 5.423 million. However, the decline also reflects those whose unemployment benefits have expired. Claims for unemployment are tabulated each week to show the number of individuals who filed for unemployment insurance for the first time. With a decreasing trend in the filing of new claims for unemployment, this suggests that the labor market is improving. While encouraging, this data is usually not considered to be very important to the mortgage market.

• Fed's MBS Purchase Program - The results of this week's purchases of mortgage backed securities by the Feds will be released in the afternoon. As of last Thursday, the Feds have purchased over $1.006 trillion in mortgage backed securities this year. The Feds plan on purchasing up to $1.25 trillion in mortgage backed securities through March 31st.

In other news, the 7-year Note auction is being held today. If the auction is met with strong demand, we should see mortgage interest rates continue to stay down. However, if these auctions are met with lackluster demand, we may see an increase in mortgage interest rates this week.

What's Happening With Mortgage Interest Rates Today:

Low to Moderate Volatility. Overall, I believe that it is going to be an active week for the mortgage market. I expect to see volatility in mortgage interest rates the first three days of the week.

There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. While there's still some room for MBS prices to tick higher, it's better to have locked when you should have floated than it is to float when you should have locked.

If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.

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 Harwich, MA.

---

	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

---

 

The Mortgage Interest Rate Lock Advisory for Dennis MA for November 24, 2009

Here are some of the events affecting mortgage interest rates today in Dennis, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.03 this morning - up 1/32 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 102.16 - up 6/32 from it's opening. 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 about the same in price this morning as compared to yesterday.

Recent Activity in Mortgage Backed Securities:

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:

• Consumer Confidence Index (CCI) for November - the CCI came in with a reading of 49.5, a little better than expected. This means that consumers are more optimistic about their own financial situations than many had thought. Rising confidence means consumers are more apt to make large purchases in the near future, effectively fueling economic growth. However, this report had no impact on mortgage interest rates this morning.
  
  
• 3rd Quarter Gross Domestic Product (GDP) - annual rate of growth came in at 2.8% as expected. This means that the economy did not grow as much during the 3rd quarter than previously thought. Because the GDP came in as expected, this report had no impact on mortgage interest rates this morning.

In other news, the 5-year Note auction is being held today. If the auction is met with strong demand, we should see mortgage interest rates continue to stay down. However, if these auctions are met with lackluster demand, we may see an increase in mortgage interest rates this week.

The minutes of the last FOMC meeting will be released at 2 PM today. The minutes may or may not have an impact on the mortgage market - it will depend on what's in the minutes. The key will be concerns over inflation and the Fed's next move. If the Fed members were concerned about inflationary pressures and overly optimistic about economic growth, we could see prices of mortgage backed securities move lower and mortgage interest rates move higher later this afternoon

What's Happening With Mortgage Interest Rates Today:

Low to Moderate Volatility. There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. Mortgage rates are currently inching upwards again. If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.

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 Dennis, MA.

---

	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

---

 

The Mortgage Interest Rate Lock Advisory for Yarmouth MA for November 23, 2009

Here are some of the events affecting mortgage interest rates today in Yarmouth, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.75 this morning - the same as Friday'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 101.84 - up 3/32 from its opening. 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 the same in price this morning as compared to Friday's close.

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:

Recent Activity in Mortgage Backed Securities:

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

• Existing Home Sales Report for October - the National Association of Realtors (NAR) that 610,000 existing homes were sold last month, much more than expected. This is an 10.1% increase over the previous month's sales, and is the highest level since February, 2007. This report provides us with a measurement of housing sector strength and mortgage credit demand. The report shows that the housing sector is improving. However, this report usually had little or no impact on the mortgage market or mortgage interest rates this morning.

Is the housing market really improving? Watch this video from CNBC to learn more:

What's Happening With Mortgage Interest Rates Today:

Low to Moderate Volatility. Overall, the first three days of the week will be the most important with the release of the Retail Sales Report, the Producer Price Index and the Consumer Price Index reports.

There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. While there's still some room for MBS prices to tick higher, it's better to have locked when you should have floated than it is to float when you should have locked.

If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.

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.

Get the best available mortgage interest rates for your situation in Yarmouth, MA!

---

	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

---

 

The Mortgage Market Watch for the Week of November 23, 2009

Events Affecting the Mortgage Market This Week:

There will be $118 billion in Treasury auctions this week - 2-Year Notes on Monday, 5-year Notes on Tuesday, and 7-Year Notes on Wednesday. If these auctions are met with strong demand, we should see mortgage interest rates continue to stay down. However, if these auctions are met with lackluster demand, we may see an increase in mortgage interest rates this week.

The financial markets will be closed on Thursday in observance of Thanksgiving Day. There markets will not close early Wednesday. But, they will close early Friday. Friday will be a very light day in the mortgage market as many market participants will be home. We will likely see little change to mortgage interest rates that day.

Economic Reports to be Released This Week:

There are seven economic reports scheduled for release this holiday-shortened week. All of the economic report will be posted over the first three days of the week, so expect some volatility in mortgage interest rates.

Monday, November 23rd:

• Existing Home Sales Report for October - this report provides us with a measurement of housing sector strength and mortgage credit demand. The report is expected to show an increase in existing home sales, indicating that the housing sector may be strengthening. However, this report usually has little or no impact on the mortgage market or mortgage interest rates.

Tuesday, November 24th:

• Consumer Confidence Index (CCI) for November - released by the Conference Board, this report provides us with a measurement of consumer willingness to spend. Analysts are expecting to see little change from last month's reading, meaning consumer were just as concerned about their own financial situations as they were last month. If consumer confidence is rising, analysts believe that consumers are more apt to make larger purchases, essentially fueling economic growth. This raises inflation concerns and usually pushes mortgage interest rates higher.

Wednesday, November 25th:

• Durable Goods Orders fro October - this data helps us measure manufacturing strength by tracking orders for big-ticket items, but is known to be quite volatile from month-to-month. It is expected to show a 0.5% increase in new orders. A smaller than expected rise would be considered good news for the mortgage market and mortgage interest rates.
  
  
• Personal Income and Outlays Report for October - this data is thought to measure consumers' ability to spend and their current spending habits. This is important because consumer spending makes up two-thirds of the U.S. economy. It is expected to show 0.2% increase in income and a 0.5% increase in consumer spending. Smaller than expected readings would be good news for the mortgage market and help keep mortgage interest rates down.
  
  
• Revised University of Michigan Index of Consumer Sentiment reading for November - analysts are expecting to see an upward revision to the preliminary reading of 66.0. However, this data will usually has little to no impact on the mortgage market and mortgage interest rates.
  
  
• New Home Sales Report for October - the report is expected to show an increase in new home sales, indicating that the housing sector may be strengthening. However, this data will usually has little to no impact on the mortgage market and mortgage interest rates.
  
  
• Jobless Claims - New claims for unemployment are tabulated each week to show the number of individuals who filed for unemployment insurance for the first time. Analysts are predicting that 495,000 new claims for unemployment will have been filed last week. With a decreasing trend in the filing of new claims for unemployment, this suggests that the labor market is improving. However, this data is usually not considered to be very important to the mortgage market.
  
  
• Fed's MBS Purchase Program - The results of his week's purchases of mortgage backed securities by the Feds will be released in the afternoon. As of last Thursday, the Feds have purchased over $1.006 trillion in mortgage backed securities this year. The Feds plan on purchasing up to $1.25 trillion in mortgage backed securities through March 31st.

Thursday, November 26th:

• There are no economic reports scheduled for release today.

Friday, November 27th:

• There are no economic reports scheduled for release today.

How do Economic Data Releases Affect Mortgage Interest Rates?

One of the most important things for you to know when deciding when to lock in the interest rate on your mortgage is knowing what economic data is going to be released - and when - and how it may impact the mortgage market and mortgage interest rates.

While an in depth review of an economic event can help you make an informed decision, understanding the nuances of a release can't help you if you don't know when it's happening. Economic data releases are important because they provide a snapshot of what's happening in the economy. They also provide a foreshadowing of any upcoming market volatility. It's just as important to know when these data releases are happening as knowing what effect these releases can have on the mortgage market.

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:

Recent Activity in Mortgage Backed Securities:

Remember - as the prices of mortgage backed securities goes up, the yields come down - and mortgage interest rates come down with it. Conversely, as the prices of mortgage backed securities goes down, the yields go up - and so do mortgage interest rates.

Mortgage Interest Rate Outlook:

Moderate Volatility. Overall, I believe that it is going to be an active week for the mortgage market. I expect to see volatility in mortgage interest rates the first three days of the week.

There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. While there's still some room for MBS prices to tick higher, it's better to have locked when you should have floated than it is to float when you should have locked.

If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.

---

	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

---

 

The Mortgage Interest Rate Lock Advisory for Barnstable MA for November 20, 2009

Here are some of the events affecting mortgage interest rates today in Barnstable, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.72 this morning - up 1/32 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 101.84 - up 4/32 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 about the same in price this morning as compared to yesterday.

Recent Activity in Mortgage Backed Securities:

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.

What's Happening With Mortgage Interest Rates Today:

Low to Moderate Volatility. There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. Mortgage rates are currently inching upwards again. If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.

There are a couple of economic reports scheduled for release next week. Next week is also a holiday-shortened week due to Thanksgiving. Look for more details on next week's events 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.

Get today's mortgage interest rates for your situation in Barnstable, MA.

---

	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

---

 

The Mortgage Interest Rate Lock Advisory for Mashpee MA for November 19, 2009

Here are some of the events affecting mortgage interest rates today in Mashpee, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.75 this morning - up 2/32 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 101.75 - the same as it 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 about the same in price this morning as compared to yesterday.

Recent Activity in Mortgage Backed Securities:

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:

• Leading Economic Indicators (LEI) -the Conference Board reported the LEI increased 0.3% in October, slightly less that 0.4% increase analysts expected. This follows a 1.0% increases the previous months. This report attempts to predict economic activity over the next three to six months. This means that analysts are forecasting an small increase in economic activity over the next few months. However, this report usually does not have much of an impact on the mortgage market.
  
  
• Jobless Claims -505,000 new claims for unemployment were filed last week - in line with estimates. This is slightly more than the 502,000 new claims filed the previous week. The 4-week average declined by 4,500 to 519,750 - the lowest since November 2008. And, continuing claims declined by 139,000 to 5.631 million. However, most of the decline in continuing claims is attributed to the expiration of unemployment benefits. With a decreasing trend in the filing of new claims for unemployment, this suggests that the labor market is improving. However, this data is usually not considered to be very important to the mortgage market.
  
  
• Fed's MBS Purchase Program - The results of this week's purchases of mortgage backed securities by the Feds will be released in the afternoon. As of last Thursday, the Feds have purchased over $1.006 trillion in mortgage backed securities this year. The Feds plan on purchasing up to $1.25 trillion in mortgage backed securities through March 31st.

Is inflation looming around the corner? Watch this video from CNBC on today's economic reports:

What's Happening With Mortgage Interest Rates Today:

Moderate Volatility. There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. Mortgage rates are currently inching upwards again. If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.

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.

Get today's mortgage interest rates for your situation in Mashpee, MA.

---

	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

---

 

The Mortgage Interest Rate Lock Advisory for Falmouth MA for November 18, 2009

Here are some of the events affecting mortgage interest rates today in Falmouth, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.69 this morning - down 2/32 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 101.72 - up 1/32 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 about the same in price this morning as compared to yesterday.

Recent Activity in Mortgage Backed Securities:

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:

• Consumer Price Index (CPI) for October - there was a 0.3% increase in the overall reading, and a 0.2% increase in the core data reading - slightly better than expected. Analysts expected to see a 0.2% increase in the overall reading, and a 0.1% increase in the core data reading. The core date was driven up mostly by the prices of cars and light trucks. Similar to the Producer Price Index (PPI), this report measures inflationary pressures at the consumer level of the economy. While the report revealed slightly stronger than expected readings, it did not have much of an impact on the mortgage market or mortgage interest rates this morning.
  
  
• Housing Starts for October - there were 529,000 housing starts in October - a 10.9% decline from the previous month - and is much less than the 600,000 that was expected. It's also the lowest level since April of this year. While this report provides an indication of strength in the housing sector, it usually does not have a noticeable impact on the mortgage market or mortgage interest rates.

In other news, Robert Eisenbeis, chief monetary economist at Cumberland Advisors Inc. and a former research director at the Federal Reserve Bank of Atlanta, talks about housing starts and consumer sentiment. Watch this video from Bloomberg:

What's Happening With Mortgage Interest Rates Today:

Moderate Volatility. There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. Mortgage rates are currently inching upwards again. If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.

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.

Get today's mortgage interest rates for your situation in Falmouth, MA.

---

	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

---