The Mortgage Interest Rate Lock Advisory for Mashpee MA for February 4, 2010
Here are some of the events affecting mortgage interest rates today in Mashpee, MA.
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.88 this morning - the same as yesterday's close.
- The 4.5% MBS coupon is currently trading at 100.06 - up 6/32 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 1-4-2010 to 2-3-2010:
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 0.125% - 0.25% better in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Jobless Claims - 480,000 new claims for unemployment were filed last week, 25,000 more than expected, and 10,000 more than the previous week. Analysts predicted there would be 450,000 new claims. However, the four-week average fell 9,000 to 440,750. The four-week average has increased again by 11,750 to 468,750. This suggests that the labor market is no longer improving. While This data is usually not considered to be very important to the mortgage market; however, this led to lower mortgage interest rates this morning.
- The 4th Quarter Nonfarm Productivity and Cost Index - is up 6.0% for the 4th quarter of 2009, far short of the 7.0% increase that was expected. However, the report had little impact on the mortgage market this morning.
- Factory Orders Report for December - rose 1.0%, more than the 0.5% increase that was expected, and follows a 1.1% increase the previous month. It is similar to the Durable Goods Orders release that was posted late last week, except this report includes orders for both durable and non-durable goods. However, the report had little impact on the mortgage market this morning.
Learn more about the jobless claims and productivity report in this video from CNBC:
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Mortgage interest rates are still at historic lows. There's not much potential for MBS prices to tick higher (lower mortgage rates) as the Fed begins winding down their stimulus programs soon as it appears the overall economy is improving. There's also the fear of inflation.
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. It's better to have locked when you should have floated than it is to float when you should have locked.
Mortgage interest rates are generally holding at currently levels. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage interest rates can change for the worse.
Get current mortgage interest rates for your situation in Mashpee, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB