The Mortgage Interest Rate Lock Advisory for September 18, 2009
Here are some of the events affecting mortgage interest rates today in Massachusetts, Maine, and New Hampshire.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened up 1/32 this morning to 100.81.
The price of the FNMA 30-Year 4.5% MBS coupon closed up 10/32 yesterday to 100.78 (as shown by the white line). MBS was down as much as 7/32 this morning, but is now trading down 1/32 at 101.78 (as shown by the blue line). 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% worse in price this morning as compared to yesterday, but may improve this afternoon.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- There are no economic reports expected to be released today.
What's Happening With Mortgage Interest Rates Today:
Low to Moderate Volatility. Overall, look for less volatility in the mortgage market today as there are no economic reports due for release. Look for the mortgage market to be heavily influenced by the stock market today.
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.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB