Professional Home Staging and Photography Blog: December 2009

The Mortgage Interest Rate Lock Advisory for Provincetown MA for December 30, 2009

The Mortgage Interest Rate Lock Advisory for Provincetown MA for December 30, 2009

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

What the Mortgage Backed Securities Market is Doing Today:


  • The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.03 this morning - up 6/32 from yesterday's close.
  • The 4.5% MBS coupon is currently trading at 100.03 - the same as 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 essentially be the same in price this morning as compared to yesterday.

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

  • There are no economic reports scheduled for release today.

In other news, the Feds will auction $32 billion in 7-Year Notes today; the results will be posted at 1 PM. The auction supply will weigh heavily on the bond and mortgage markets on mounting concern that demand from foreign central banks may lessen on concerns the US federal debt is too great. This could lead to higher mortgage interest rates.

Is the stock market rallying, or should we be bracing for a correction? Watch this video from CNBC to learn more:


What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. As we saw last week, a shortened holiday trading week by no means translates into calmness in the mortgage market. The bond and mortgage markets will close early Thursday at 2 PM, and will be closed all day Friday in observance of New Years Day. This means that trades in mortgage backed securities will light today and tomorrow. This raises the possibility of stronger reactions to surprises in the mortgage market from economic data than we normally would see.

Mortgage interest rates are still at historic lows. 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.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 11-30-2009 to 12-29-2009:

The price trend of the FNMA 30-Year 4.5% coupon from 11-30-2009 to 12-29-2009

My Mortgage Interest Rate Lock Advice for Today:

If I were applying for a mortgage today or if I had already applied for a mortgage but have not yet locked in a rate, I would

  • Float if my closing was taking place within the next 10 days

  • Float if my closing was taking place between 11 and 30 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 Provincetown, MA.

 

East Bridgewater, MA 02333
Phone: (508) 443-1332

Lew Corcoran, ASP®, IAHSP, IAHSP-CB
Accredited Home Staging Professional
Professional Real Estate Photographer

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Comment balloon 0 commentsLew Corcoran, ASP® • December 30 2009 09:59AM
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