Mortgage Rate Forecast: February 2010

Mortgage Rate Forecast for Falmouth MA for February 26, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.91 this morning - down 2/32 from yesterday's close.
  
  
  
• At 9:30, the 4.5% MBS coupon was trading at 101.06 - up 5/32 from its opening.

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 1-27-2010 to 2-26-2010:

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.250% better in price this morning as compared to yesterday.

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

• First Revision to the 4th Quarter Gross Domestic Product (GDP) - the GDP in the 4th Quarter of 2009 grew at an annualized rate of 5.9%, the highest in 7 years. While this is good news, the growth is not expected to last. The increase in GDP is due primarily to an increase in inventories that were depleted last year, not from increased consumer spending. So far, this has been a jobless recovery, and unemployment in recent weeks has been increasing. As confidence remains low and unemployment remains high, it's not expected that consumers will be purchasing more goods again any time soon. While significant, the data usually does not have an impact on the mortgage market or mortgage rates unless it varies greatly from forecasts.
  
  
• University of Michigan's Index of Consumer Sentiment - a reading this morning of 73.6 indicates that consumer sentiment fell 7% this month. The reading was 74.4 in January. This index measures consumer willingness to spend and can usually have enough of an impact on the financial markets to change mortgage rates. While this report indicates that consumers are less likely to make purchases, it had no impact on the mortgage market this morning.
  
  
• Existing Home Sales Report - released by the National Association of Realtors (NAR), this report will provide us with a measurement of housing sector strength and mortgage credit demand. Existing home sales fell 7.2% in January, and follows a decline of 16.7% in December. Existing home sales fell to an annualized rate of 5.05 million in January, down from the annualized rate of 5.45 million in December. Meanwhile, the inventory of homes for sale increased from 6.5 months to 7.2 months. While significant, this data usually does not have an impact on the mortgage market.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage rates are again off their historic lows. It appears that the overall economy is improving. The Fed raised the discount rate last week by a 1/4 point. Also, the Fed continues to auction Treasury Notes and Bonds to pay for the increasing massive government debt, all of which contributes to the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's very little potential for lower mortgage rates.

If you have not yet locked in your mortgage rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage rates can change for the worse - often without notice.

If you're happy with the interest rate being offered to you and if you don't want to risk mortgage rates moving higher, then you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked.

Get current mortgage rates for Falmouth, MA.

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	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

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Mortgage Rate Forecast for Sandwich MA for February 25, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.69 this morning - the same as yesterday's close.
  
  
  
• At 9:30, the 4.5% MBS coupon was trading at 100.84 - up 5/32 from its opening.

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 1-26-2010 to 2-25-2010:

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.250% better in price this morning as compared to yesterday.

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

• Durable Goods Orders Report - this report provides us with an important measurement of manufacturing sector strength by tracking orders for big-ticket items or products that are expected to last at least three years. There was a 3.0% increase in new durable goods orders in January, much more than the 1.5% increase that was expected. This follows a 0.2% increase in November and a revised 1.6% increase in December. This report shows that the manufacturing sector is gaining some momentum. However, when the transportation component is excluded, new durable goods orders actually fell 0.6% after a revised 2.0% gain in December. This report had no impact on mortgage rates this morning.
  
  
  
• Jobless Claims - 496,000 new claims for unemployment were filed last week. This is 23,000 more than the previous week, 36,000 more than expected, and is the highest since last November. The four-week average for unemployment rose by 6,000 to 473,750, and continuing claims rose by 54,000 to 4.617 million. This suggests that the labor market is again getting worse. This data is usually not considered to be very important to the mortgage market; however, the increase in unemployment led to slightly lower mortgage rates this morning.

In other news, Ben Bernanke, Chairman of the Federal Reserve, delivered his report before the House Committee on Financial Services. Ben Bernanke reiterated his intentions to keep key interest rates low for the next several months.

Here is what Bernanke said about the discount rate:

"To discourage banks from relying on the discount window rather than private funding markets for short-term credit, last week we also increased the discount rate by 25 basis points.....These adjustments are not expected to lead to tighter financial conditions for households and businesses and should not be interpreted as signaling any change in the outlook for monetary policy, which remains about the same as it was at the time of the January meeting of the FOMC."

Here is what Bernanke said about jobs:

"Notwithstanding these positive signs, the job market remains quite weak, with the unemployment rate near 10 percent and job openings scarce. Of particular concern, because of its long-term implications for workers' skills and wages, is the increasing incidence of long-term unemployment; indeed, more than 40 percent of the unemployed have been out of work six months or more, nearly double the share of a year ago."

Yesterday, Ben Bernanke delivered his Semi-annual Monetary Policy Report before the House Committee on Financial Services. Watch Ed McKelvey, a senior economist at Goldman Sachs, share his reaction on CNBC on Ben Bernanke's Congressional testimony about monetary policy and the economy:

Ben Bernanke will deliver his Semi-annual Monetary Policy Report before the Senate Banking Committee today. But, it will be more of a Q&A session. According to analysts from Bank of Montreal (BMO), "The Q&A session will provide an opportunity to clarify issues that may have been misinterpreted by market participants. But really, the Chairman couldn't have been any clearer in saying that the Fed has no intention of raising policy rates for an ‘extended period'. And, given the sickening 11.2% plunge in new home sales to record lows in January, he's unlikely to stray from that message today."

The Treasure Dept. will be auctioning $32 billion in 7-Year Notes today. The Notes and Bonds are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates this afternoon.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage rates are again off their historic lows. It appears that the overall economy is improving. The Fed raised the discount rate last week by a 1/4 point. Also, the Fed continues to auction Treasury Notes and Bonds to pay for the increasing massive government debt, all of which contributes to the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's very little potential for lower mortgage rates.

If you have not yet locked in your mortgage rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage rates can change for the worse - often without notice.

If you're happy with the interest rate being offered to you and if you don't want to risk mortgage rates moving higher, then you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked.

Get current mortgage rates for Sandwich, MA.

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	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

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Underwater - or upside down - home ownership got worse as the past year wound down. First American CoreLogic published a new research paper on the issue stating that over 11.3 million homes were upside down at the end of 2009, meaning that 24% of all residential real estate with mortgages was carrying that unwelcome label. At the end of the third quarter of 2009 there were 10.7 million houses underwater, so in three months about 600,000 additional properties got whacked.

To stay with the statistics, First American CoreLogic further reports that 2.3 million more homes were heading towards the famous freezing submergence, these being units that had less than 5% equity cushion at year's end. Put together with those already underwater, the picture becomes increasingly bleak, because it now translates to roughly 29% of all mortgages holding that classification.

Nevada continues to top the list of states with the most underwater mortgages, coming in at 70%. Las Vegas area - with communities of Mountains Edge, Summerlin, Anthem, Henderson, Canyon Gate and Rhodes Ranch - predictably hoards the majority of those on account of being the population center.

Underwater mortgage in itself is a serious problem. The homeowner is trapped. He can't sell the property unless he brings hard-earned money to the table to close a deal. He can't refinance either, for the same reason. Generally, no one will do that. This effectively removes a large segment of current mortgage borrowers from the real estate market, putting a sizable dent on the demand side.

Secondly, upside down homeowners are more liable to default on their mortgages. The more they are in negative equity, the more likely it is that they'll lose the property, be it a short sale, foreclosure or deed in lieu. As their FICO scores get dinged badly, they'll be unable to get mortgage approvals for a few years, dealing another heavy blow to the demand function.

Simply looking at what underwater mortgage can do to demand sends shivers down the spine of policy makers, home loan providers, real estate experts and other interested parties. A major headache indeed. Or worse.

 Photo by krossbow

Mortgage Rate Forecast for Bourne MA for February 24, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.81 this morning - the same as yesterday's close.
  
  
  
• At 9:30, the 4.5% MBS coupon was trading at 100.69 - down 4/32 from its opening.

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 1-25-2010 to 2-24-2010:

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.250% worse in price this morning as compared to yesterday.

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

• New Home Sales - fell 11.2% in January to an annualized rate of 309,000 homes. Analysts were expecting a 3.7% increase to an annualized rate of 360,000. In December, new homes sold at an annualized rate of 342,000. Median prices of new homes fell 5.6% to $203,500. Meanwhile, the inventory of new homes on the market jumped to 9.1 months, reversing eight months of improvement. This also shows that housing demand remains weak with no buyer urgency as home prices continue to fall. While fairly significant, this data did not have much of an impact on the mortgage market this morning as we await Ben Bernanke's testimony before Congress today.

In other news, Ben Bernanke, Chairman of the Federal Reserve, will deliver his Semi-annual Monetary Policy Report before the House Committee on Financial Services today and before the Senate Banking Committee tomorrow. Look for him to specifically address the unemployment situation as well as the housing crises and the impact they have on the overall economy. His testimony could have an impact on mortgage rates today and tomorrow.

Watch Sebastien Barbe, head of emerging market research & strategy at Credit Agricole CIB on MSNBC discuss how Bernanke's upcoming congressional testimony could affect the value of the dollar:

The Treasure Dept. will be auctioning $42 billion in 5-Year Notes today. The Notes and Bonds are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates this afternoon.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage rates are again off their historic lows. It appears that the overall economy is improving. The Fed raised the discount rate last week by a 1/4 point. Also, the Fed continues to auction Treasury Notes and Bonds to pay for the increasing massive government debt, all of which contributes to the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's very little potential for lower mortgage rates.

Mortgage rates fell yesterday on the decline in consumer confidence. If you have not yet locked in your mortgage rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage rates can change for the worse - often without notice.

If you're happy with the interest rate being offered to you and if you don't want to risk mortgage rates moving higher, then you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked.

Get current mortgage rates for Bourne, MA.

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	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

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Mortgage Rate Forecast for Wareham MA for February 23, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.38 this morning - the same as yesterday's close.
  
  
  
• At 9:30, the 4.5% MBS coupon was trading at 100.53 - up 5/32 from its opening.

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 1-24-2010 to 2-23-2010:

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.250% better in price this morning as compared to yesterday.

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

• Consumer Confidence Index (CCI) - consumer confidence for February fell 9.9 points to 46.0. Posted by the Conference Board, this measures consumer willingness to spend. As a comparison, a reading of 80 or better is considered a signal of economic health. Retail sales typically move in tandem with consumer optimism. Because consumer spending makes up two-thirds of the U.S. economy, any related data is watched closely by market traders and can have a significant influence on the mortgage market. If consumers are less confident in their personal financial situations, they are less likely to make large purchases. The lower CCI readings will help bring lower mortgage rates this morning.

In other news, the Case-Shiller Home Price Index revealed that home prices slipped another 0.2% in December, and follows a 0.2% decline in November. Home prices are down an average 3.1% since December 2008.

James O'Sullivan, chief economist at MF Global Ltd., says the plunge in housing prices is over. Watch this video from Bloomberg to learn more:

The Treasure Dept. will be auctioning $44 billion of 2-Year Notes today. The Notes and Bonds are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage rates are again coming off their historic lows. It appears that the overall economy is improving. The Fed raised the discount rate last week by a 1/4 point. Also, the Fed continues to auction Treasury Notes and Bonds to pay for the increasing massive government debt, all of which contributes to the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's very little potential for lower mortgage rates.

Mortgage rates continued rising yesterday and again this morning. If you have not yet locked in your mortgage rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage rates can change for the worse - often without notice.

If you're happy with the interest rate being offered to you and if you don't want to risk mortgage rates moving higher, then you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked.

Get current mortgage rates for Wareham, 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

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Mortgage Rate Forecast for Plymouth MA for February 22, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.28 this morning - the same as Friday's close.
  
  
  
• At 9:30, the 4.5% MBS coupon was trading at 100.22 - down 2/32 from its opening.

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 1-23-2010 to 2-22-2010:

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be the same in price this morning as compared to Friday.

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

• There are no economic reports scheduled for release today.

In other news, the Treasure Dept. will be auctioning $8 billion of 30-year Treasury Inflation Protected Securities (TIPS) today, the first TIPS auction since 2002, and will post results at 1:00 PM ET. The Notes and Bonds are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage rates are again coming off their historic lows. It appears that the overall economy is improving. The Fed raised the discount rate last week by a 1/4 point. Also, the Fed continues to auction Treasury Notes and Bonds to pay for the increasing massive government debt, all of which contributes to the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's very little potential for lower mortgage rates.

Mortgage rates continued rising yesterday and again this morning. If you have not yet locked in your mortgage rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage rates can change for the worse - often without notice.

If you're happy with the interest rate being offered to you and if you don't want to risk mortgage rates moving higher, then you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked.

Get today's mortgage rates for Plymouth, MA.

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	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

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The Mortgage Interest Rate Lock Advisory for Provincetown MA for February 19, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.16 this morning - the same as yesterday's close.
  
  
  
• At 9:30, the 4.5% MBS coupon was trading at 100.16 - the same as its opening.

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 1-20-2010 to 2-19-2010:

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.375% worse in price this morning as compared to yesterday.

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

• Consumer Price Index (CPI) - the overall index is up 0.2%, less than the 0.3% increase that was expected, but more than the 0.1% increase in December. The core data fell 0.1%, and is less than expected. The core data excludes the more volatile food and energy prices. While weaker than expected readings should lead lower mortgage rates tomorrow morning, mortgage rates continued getting worse this morning.

In other news, the Fed raised the Discount Rate by a 1/4 point yesterday afternoon. The Discount Rate is the overnight rate the Fed charges banks for borrowing money to meet their reserve requirements. The move led to higher mortgage rates yesterday afternoon.

Also. the Treasury Dept announced yesterday that $126 billion in the Notes and Bond auctions are scheduled for next week. The Notes and Bonds are used to finance the massive government debt, and the results of these auctions could result in higher mortgage rates next week.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage rates are again coming off their historic lows. It appears that the overall economy is improving. The Fed raised the discount rate yesterday by a 1/4 point. Also, the Fed continues to auction Treasury Notes and Bonds to pay for the massive government debt, all of which contribute to the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's not much potential for lower mortgage rates.

Mortgage rates continued rising yesterday and again this morning. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional and rates can change for the worse - often without notice.

If you're happy with the interest rate being offered to you and if you don't want to risk mortgage rates moving higher, then you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked.

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

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	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

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The Mortgage Interest Rate Lock Advisory for Truro MA for February 18, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.69 this morning - the same as yesterday's close.
  
  
• At 9:30, the 4.5% MBS coupon was trading at 100.72 - up 2/32 from its opening.

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 1-19-2010 to 2-18-2010:

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be the same in price this morning as compared to yesterday.

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

• Jobless Claims - 473,000 new claims for unemployment were filed last week, 33,000 more than expected, and 33,000 more than the previous week. Analysts predicted there would be 440,000 new claims. However, the four-week average fell by 1,500 to 467,500, and is in line with the readings of the past two months. There was no change in continuing claims for unemployment as it remains at 4.563 million. This suggests that the labor market is no longer improving. This data is usually not considered to be very important to the mortgage market; however, the increase in unemployment helped kept mortgage rates from getting worse this morning.
  
  
• Producer Price Index (PPI) - jumped 1.4% January, more than the 0.8% increase that was expected, and much more than the 0.2% increase in December. This means that prices paid at the producer level rose more than thought. At the core level, the PPI was up 0.3% after being flat in December. The core level excludes the more volatile food and energy prices. Rising prices indicate inflation and tends to have a negative impact on the mortgage market which in turn leads to higher mortgage rates. While significant, this report had no impact on mortgage rates this morning because of the higher unemployment numbers.
  
  
• Leading Economic Indicators (LEI) - rose only 0.3% in January, less than the 0.5% rise that was expected, and is less than the 1.1% increase in December. This indicated that that economic activity may rise in the near future, but not as much as previously thought. The smaller than expected rise is good news for the bond and mortgage markets, but had no effect on mortgage rates this morning.

In other news, the minutes of the January Federal Open Market Committee (FOMC) meeting were released yesterday. The Fed is currently unwinding its stimulus program in mortgage backed securities (set to expire March 31st), and plans to divest itself of all the non-treasury assets it holds. The Fed is expected to begin increasing the discount rate soon. The discount rate is the overnight rate banks pay for borrowing from the Federal Reserve.

The Treasury Dept will announce later this morning Treasury announces the terms of the Notes and Bond auctions scheduled for next week. The Notes and Bonds are used to finance the massive government debt, and could result in upward revisions to mortgage rates next week.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage rates are still at historic lows. However, because it appears that the overall economy is improving, and because the Fed continues to auction Treasury Notes to pay for the massive government debt, there's the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's not much potential for lower mortgage rates.

Mortgage rates were worse yesterday, but may improve slightly today. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional and rates can change for the worse - often without notice.

If you're happy with the rate being offered to you and if you don't want to risk mortgage rates moving higher, then you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked.

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

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	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

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Some national housing reports lately have been cautiously positive. Prices have stabilized a bit in scattered real estate markets, a good example of that is Las Vegas. Sales have gone up here and there, spurred on by affordable mortgage money and of course record-low price levels. All this is still short of kicking off a full-blown recovery, but at least it's something to work with.

Despite that, TransUnion, one of the big three credit bureaus, now says that mortgage delinquencies of 60 or more days climbed to a new high of 6.89% in the fourth quarter of 2009, translating into a 12^thquarterly increase in a row. A year earlier, in Q408, the same number stood at 4.58%, so the annual jump amounts to around 50%. A major leap up. Nevada continues to lead the pack in most delinquencies at 16.19%, most of it coming from Las Vegas, and Florida follows close behind at 14.93%. On the other side of the equation, North Dakota topped the list of fewest delinquencies at 1.84%. One might ask, "Where have they been?"

At this stage in the economic cycle it appears that unemployment is the most weighted factor in determining mortgage delinquency levels. The jobless rate in Las Vegas, for instance, is well into double digits, pushing many borrowers - whose income sources fell from two to one or in worst case scenario from one to none - into home loan payment difficulties. Mortgage providers are surprisingly dormant in working with them to find common ground in efforts to keep them in their houses, adding to their woes. On top of that, scores of them are upside down - the mortgage balance is more than the home's value - by a wide margin, effectively preventing them from doing a refinance with today's low rates.

Housing will struggle for the foreseeable future, the only conclusion that can be drawn from TransUnion's research. Some regions with a better than average job growth will emerge from the swoon sooner than others. Southern Nevada - including Summerlin, Canyon Gate, Spanish Trail, Mountains Edge, Henderson and Anthem - appears to belong to the tail end of that, since there is a lot of ground to be covered before unemployment numbers sink to where they should be. Besides, mortgage lenders are still licking their wounds from the thorough whipping they just absorbed, have tightened underwriting guidelines as a result and that is another obstacle to a transition into a meaningful growth pattern.

The Mortgage Interest Rate Lock Advisory for Wellfleet MA for February 17, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.94 this morning - the same as Friday's close.
  
  
• At 9:30, the 4.5% MBS coupon was trading at 100.84 - down 3/32 from its opening.

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 1-18-2010 to 2-17-2010:

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.250% worse in price this morning as compared to yesterday.

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

• Housing Starts for January - housing starts was up in January, and better than expected. Housing starts increased 2.8% to an annualized rate of 591,000 units in January after falling 0.7% December. This indicates that the new housing sector is beginning to recover. However, the number of housing permits issued fell 4.9% in January after a 10.9% increase the previous before. Strong seasonal factors and colder weather makes it difficult for housing starts to find any direction during the winter months. Usually, this report has little to no impact on the mortgage market or mortgage interest rates.
  
  
  
• Industrial Production Report for January - there was a 0.9% increase in production in January, slightly better than expected, and follows a 0.6% increase in December. On average, manufacturing is improving. While this report has no impact on mortgage interest rates this morning, a continuing upward trend in manufacturing could lead to higher interest rates soon.
  
  
  
• Minutes from the Last Federal Open Market Committee (FOMC) Meeting - This will give market participants insight into the Fed's thinking and concerns regarding inflation and monetary policy. It is one of those pieces of information that may cause a great deal of volatility in the markets - or it could be a non-factor, depending on what the minutes show. They will be released at 2:00 PM ET, so they shouldn't affect the markets or mortgage rates until afternoon hours.

What's Happening With Mortgage Rates Today:

Low to Moderate. Mortgage rates are still at historic lows. However, because it appears that the overall economy is improving, and because the Fed continues to auction Treasury Notes to pay for the massive government debt, there's the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's not much potential for lower mortgage rates.

If you're happy with the rate being offered to you and if you don't want to risk mortgage rates moving higher, then you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked.

Mortgage rates are currently improving slightly. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional and rates can change for the worse - often without notice.

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

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	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

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