Professional Home Staging and Photography Blog: December 2009

The Mortgage Interest Rate Lock Advisory for Wellfleet MA for December 2, 2009

The Mortgage Interest Rate Lock Advisory for Wellfleet MA for December 2, 2009

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

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.0% MBS coupon opened at 99.81 this morning - up 2/32 from yesterday's close.

The chart below shows today's price trend of the FNMA 30-Year 4.0% coupon:

The price trend of the FNMA 30 Year 4.0% Mortgage Backed Security (MBS) on December 2, 2009

The FNMA 30-Year 4.0% MBS coupon fell 22/32 yesterday, and is currently trading at 99.66 - down 5/32 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 0.125% - 0.375% worse 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 4.0% coupon over the past 30 days:

The price trend of the FNMA 30-Year 4.0% coupon from 11-3-2009 to 12-2-2009

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

  • Beige Book Report - this report, which will be released at 2 PM this afternoon, is named after the color of its cover, details economic conditions by region. Released two weeks ahead of the Federal Open Market Committee (FOMC) meetings, it is heavily relied on by the Feds when determining interest rate policy. The results can affect the mortgage market and mortgage interest rates if it shows any significant surprises.

In other news, the ADP report revealed 169,000 jobs were lost in November. This follows a loss of 203,000 jobs in October.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Overall, we may see sizable movement in mortgage interest rates this week. I suspect it will be a fairly active week for the mortgage market and mortgage interest rates. The most important day of the week will be Friday with the release of the Employment Situation Report. This report will probably be the key to rates moving lower or higher for the week. If it reveals stronger than expected results, we may see mortgage interest rates spike higher - possibly erasing any gains from the week.

There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. Mortgage interest rates are 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.

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 Wellfleet, 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 02 2009 11:38AM
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