Mortgage Rate Forecast for Harwich MA for March 30, 2010
Here are some of the events affecting mortgage rates today in Harwich, MA:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.44 this morning - the same as yesterday's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 100.22 - down 7/32 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 2-28-2010 to 3-30-2010:
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 up to 0.250 points worse in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates in Harwich, MA Today:
- Consumer Confidence Index (CCI) - consumer confidence for March rose 6.1 points to 52.5, better than the 50.0 reading that was expected. 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 higher CCI readings helped stopped the rise in mortgage rates this morning.
In other news, the S&P Case-Shiller Home Price Index fell 0.4%, reflecting a continuing weak demand for housing despite low mortgage rates and tax incentives. On a year-on-year basis, home prices have fallen an average 0.7% nationwide. We expect to see an increase in foreclosures this year, which will lead to continuing declines in home values.
The 15 largest states as ranked by population are expected to see a 3.9% increase in tax revenues this year. Analysts expect a 3.5% increase in tax revenues across all 50 states. Increased tax revenues indicate that the economy is slowly recovering.
What's Happening With Mortgage Interest Rates in Harwich, MA Today:
Moderate to High Volatility. Mortgage rates are off their historic lows, and appear poised to begin climbing. The overall economy is improving while at the same time the federal government keeps accumulating more and more debt. As such, there's little or no potential for lower mortgage rates.
In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end this week. When that happens, pundits are expecting mortgage rates to get worse by 0.25% - 0.75% in rate as the year wears on. This means that a 30 year fixed rate today of 5.0% with no points could soon be between 5.25% and 6.00%. For a $200,000 mortgage, every 1/4 point increase in rate means an increase of $30 in monthly payment.
We're also starting to enter the prime home selling and buying season. Usually from this time of the year and into the summer months, you see higher 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 continue to change for the worse.
If you're happy with the interest rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. 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 Harwich, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB