Mortgage Rate Forecast: April 2010

Mortgage Rate Forecast for Massachusetts for April 28, 2010

Here are some of the events affecting mortgage rates today in Massachusetts:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.62 this morning - down 1/32 yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 100.47 - 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 rates. I expect that mortgage rates will be up to 0.250 points worse in price this morning as compared to yesterday.

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 3-29-2010 to 4-28-2010:

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

• There are no economic reports scheduled for release today.

The Treasury Dept. will be auctioning $42 billion of 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.

The Federal Open Market Committee (FOMC) will adjourn this afternoon. While we don't expect to see any change in the key short-term interest rates - currently at 0 - 0.25% - we may see some volatility in the markets after the release of their post-meeting statement this afternoon. Traders will be focused on that statement and will be looking for any signs the Fed will have to start raising key interest rates soon. Any hint or indication of increases in the key short-term interest rates could result in higher mortgage rates this afternoon.

What's Happening With Mortgage Interest Rates in Massachusetts Today:

Moderate to High Volatility. Mortgage rates are off their historic lows, and while they rose significantly a couple of weeks ago, they have since come back down a bit. But this may be temporary.

The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.

As such, there's little or no potential for lower mortgage rates anytime soon. 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.

If I were applying for a mortgage today, I would lock in my rate. However, if I were to continue floating my rate, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can change for the worse.

Be sure to check out today's Massachusetts mortgage rates.

PMI, or private mortgage insurance, played a large role in yesterday's real estate boom, allowing buyers acquire property without putting a penny down. That was a tempting prospect indeed. 100% financing actually became quite popular those days as values kept galloping up on a steady pace that quickly generated equity no borrower in his right mind would dare turn down. The standard rule required a PMI if the down payment was less than 20%. These insurers were making money hand over fist, like just about all the other housing market participants did.

The real estate market's collapse changed everything in a jiffy for PMIs. They began losing truckloads of money as insurance claim requests rolled in from besieged mortgage lenders. That's one thing. They also considerably tightened their guidelines and when that wasn't enough to turn the tide they partially or totally withdrew from many real estate markets where the destruction was the worst. The ones in the latter category were called declining markets, the more prominent of them being Arizona, California, Florida and Nevada, the fab four of housing euphoria. Things looked really bleak for the PMIs.

Now they are cautiously climbing out of somewhat of a hibernation. One of them, Radiant Guaranty, actually dropped the declining market label a while ago and now is insuring mortgages up to 95% LTV, or loan-to-value, as long as the originator is of stellar reputation with minimal delinquency ratios. Genworth has recently adjusted its underwriting rules to pretty much match those of Radiant. Not to fall too far behind the competition, MGIC - the top dog in the business - has removed some states from its restricted list and making other tweaks, like lowering the FICO score minimum to 660 for 95% home loans.

PMIs are softening their guidelines as the housing market appears to be settling down. The risk element of doing business is slowly fading. That's in stark contrast to what FHA is nowadays doing. Its mortgage underwriting guidelines are getting tougher on the heels of severe losses that some felt would soon require a taxpayer bailout. FHA used to be nearly the only game in town, but with the PMIs gradually rewriting their rules the playing field is leveling out. Cost wise, in many cases the two of them today are comparable. As the housing market continues slogging along the long and slow recovery road it's foreseeable that PMI will in time become a more attractive alternative.

Las Vegas mortgage borrowers will benefit

After the loud bubble bursting event Sin City quickly assumed the unofficial role of a flag bearer for the declining market troops when its own real estate sector did the unthinkable, and soon thereafter it turned largely into an FHA stronghold. It was tough to locate conventional mortgage money for anyone putting down less than 20%. Southern Nevada is nowadays experiencing some kind of a revival and PMI firms are reflecting that in their recent decisions. As a result Las Vegas home loan applicants will find more forgiving underwriting criteria to look at that will give the real estate market here a better chance to shake the lingering malaise off.  

Mortgage Rate Alert for Massachusetts for April 27, 2010

Here are some of the events affecting mortgage rates today in Massachusetts:

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 AM, the 4.5% MBS coupon was trading at 100.41 - up 8/32 from its opening.
  
  
• At 12:30 PM, the 4.5% MBS coupon was trading at 100.72 - up 10/32 from 9:30 AM, and up a total of 18/32 since its opening.

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 up to 0.250 points better in price this afternoon as compared to this morning, and up to 0.50 points better in price since yesterday.

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 3-28-2010 to 4-27-2010:

Economic Reports, News, and Events Currently Affecting Mortgage Interest Rates in Massachusetts:

The debt problems in Europe continue to mount. At 11 AM this morning, the S&P lowered ratings on Portugal's debt, and lowered Greece's debt to junk status. This resulted in lower mortgage rates as investors flocked to safety from the stock market to the bond and mortgage backed securities markets. The stock market has plunged 158 points.

Learn more about how the debt downgrade in Greece created volatility in the market in this video from CNBC:

If I were applying for a mortgage this afternoon, I would float my rate. However, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can change for the worse.

Be sure to check out today's Massachusetts mortgage rates.

Mortgage Rate Forecast for Massachusetts for April 27, 2010

Here are some of the events affecting mortgage rates today in Massachusetts:

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 AM, the 4.5% MBS coupon was trading at 100.41 - up 8/32 from its opening.

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 up to 0.250 points better in price this morning as compared to yesterday.

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 3-28-2010 to 4-27-2010:

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

• Consumer Confidence Index (CCI) - consumer confidence for April rose 5.4 points to 57.9 - better than the 53.5 reading that was expected. The reading was 52.5 in March, and 46.4 in February. 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 decrease in mortgage rates this morning.

In other news, the S&P Case-Shiller Home Price Index  fell 0.6%, reflecting a continuing weak demand for housing despite low mortgage rates and homebuyer tax incentives. On a year-on-year basis, however, home prices have increased an average 1.5% nationwide, the first annual increase since December 2006. While encouraging, we do expect to see an increase in foreclosures and distressed home sales this year. That coupled with the ending of the homebuyer tax credit program at the end of this month could lead to continuing declines in home values.

The Treasury 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.

The Federal Open Market Committee (FOMC) meets today, and will adjourn tomorrow afternoon. While we don't expect to see any change in the key short-term interest rates - currently at 0 - 0.25% - we may see some volatility in the markets after the release of their post-meeting statement tomorrow afternoon. Traders will be focused on that statement and will be looking for any signs the Fed will have to start raising key interest rates soon. Any hint or indication of increases in the key short-term interest rates could result in higher mortgage rates Wednesday afternoon.

What's Happening With Mortgage Interest Rates in Massachusetts Today:

Moderate to High Volatility. Mortgage rates are off their historic lows, and while they rose significantly a couple of weeks ago, they have since come back down a bit. But this may be temporary.

The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.

As such, there's little or no potential for lower mortgage rates anytime soon. 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.

If I were applying for a mortgage today, I would lock in my rate. However, if I were to continue floating my rate, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can change for the worse.

Be sure to check out today's Massachusetts mortgage rates.

Mortgage Rate Forecast for Massachusetts for April 26, 2010

Here are some of the events affecting mortgage rates today in Massachusetts:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.09 this morning - the same as Friday's close.
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 100.28 - 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 3-27-2010 to 4-26-2010:

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 up to 0.250 points better in price this morning as compared to Friday.

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

• There are no economic reports scheduled for release today.

In other news, the Treasury Dept will be auctioning $11 billion in 5-Year inflation-indexed securities (TIPS) today. If there is a strong demand for the TIPS, we should see the bond and mortgage markets market move higher during afternoon trading hours which in turn could lead to lower mortgage rates. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader selling in the bond and mortgage markets. The results of these auctions could result in higher mortgage rates next week.

What's Happening With Mortgage Interest Rates in Massachusetts Today:

Moderate to High Volatility. Mortgage rates are off their historic lows, and while they rose significantly a couple of weeks ago, they have since come back down a bit. But this may be temporary.

The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.

As such, there's little or no potential for lower mortgage rates anytime soon. 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.

If I were applying for a mortgage today, I would lock in my rate. However, if I were to continue floating my rate, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can change for the worse.

Be sure to check out today's Massachusetts mortgage rates.

When the real estate market succumbed a few years ago into a deep recession it took the home loan sector with it. While many mortgage lenders failed spectacularly, others were kept from falling off the map by costly government bailouts or found a hopeful merger partner. This sudden inferno quickly chased the private - domestic and foreign - investor almost completely away from the secondary mortgage market where they had been buying securities to support the U.S. housing industry. Mortgage financing lately has been almost exclusively provided by government-affiliated agencies Fannie Mae, Freddie Mac and FHA. The behind the scenes mover has been the Fed, being a vital component to shore up the otherwise badly limping industry.

The Fed has now withdrawn from purchasing mortgage-backed bonds and is anxiously watching how the market will come along without its considerable influence. Its nearly unlimited buying power. It must like what it is now seeing.

Redwood Trust Inc. is taking a courageous first step into the still treacherous waters as it is planning to issue about $222 million in mortgage bonds backed by loans originated by Citigroup. This is the first deal this year where Washington is not playing any guaranteeing or insurance role. It is a blue-blood private label issue.

Redwood will package the bonds very carefully, and surprisingly transparently. They for sure are high quality; the minimum credit score is 702 and the maximum LTV, or loan-to-value, is 80%. It will give potential investors more detailed information about mortgage borrowers' income and assets than what was done before. It'll reveal how many have second mortgages and whether they are self-employed. Moreover, Redwood will have skin in the game by keeping both 5% of the offering and its riskiest portion on its own books. This pool has 255 loans with an average price of $933,000, which signifies jumbo mortgage territory.

Mortgage bond investors are still hurting from the whipping they took over the last several years in the housing market disintegration and their memories are likely long. They certainly will take a look at the offering and assess the integrity of the improved disclosures, but how many will be convinced to buy is another thing. If the yield is attractive enough there will be at least some takers. Pricing for the issue should take place in the coming days.

That a mortgage-backed private label offering is being presented at all is a positive move for the entire market. The current near-total absence of the private investor won't change overnight. This is a valuable first step, however, giving a small base from which to start building investor trust on the much-maligned product.

Mortgage Rate Forecast for Massachusetts for April 23, 2010

Here are some of the events affecting mortgage rates today in Massachusetts:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.22 this morning - the same as yesterday's close.
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 100.00 - down 8/32 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 3-24-2010 to 4-23-2010:

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 0.50 points worse in price this morning as compared to yesterday.

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

• Durable Goods Orders Report - there was a 1.3% decline in new durable goods orders in March, and is much less than the 0.4% increase that was expected. This follows a revised 1.1% increase in February and a 3.0% increase in January. However, when the transportation component is excluded, new durable goods orders increased 2.8% which follows a 0.9% incrase in February. Year-on-year, overall new orders for durable goods are up 11.9% from March 2009. When transportation is excluded, new durable goods orders are up 13.5% from the same time last year. While weakened somewhat, this report shows that the manufacturing sector is still gaining some momentum. This report led to higher mortgage rates this morning.
  
  
• New Home Sales - rose 26.9% in March to an annualized rate of 411,000 homes - much more than expected. Analysts were expecting a 1.9% increase. In addition, the inventory of new homes on the market dropped to 6.7 month supply. However, the average price of new homes fell 11.1% to $258,600. It's clear that the extended home buyer tax credit is now helping. As such, we may see a decrease in new home sales after the homebuyer tax credit expires. While fairly significant, this data did not have much of an impact on the mortgage market this morning.

In other news, yesterday the Treasury Dept announced next week's Notes and Bonds auction schedule. The announcement alone caused mortgage rates to move higher yesterday afternoon.

The Treasury Dept will be auctioning a total of $118 billion in 2-Year, 5-Year, and 7-Year Notes, and $11 billion in 5 year TIPS Notes next week. 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 and mortgage markets market move higher during afternoon trading which in turn lead to lower mortgage rates. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader selling in the bond and mortgage markets. The results of these auctions could result in higher mortgage rates next week.

Overnight, stocks futures rose as George Papandreou, the Prime Minister of Greece, asked the European Union (EU) and the International Monetary Fund (IMF) to active a $60 billion rescue package to help it shore up short-term funding needs. This helped fuel a further increase in mortgage rates this morning as investors pulled out of the bond and mortgage backed securities markets.

What's Happening With Mortgage Interest Rates in Massachusetts Today:

Moderate to High Volatility. Mortgage rates are off their historic lows, and while they rose significantly a couple of weeks ago, they have since come back down a bit. But this may be temporary.

The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.

As such, there's little or no potential for lower mortgage rates anytime soon. 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.

If I were applying for a mortgage today, I would lock in my rate. However, if I were to continue floating my rate, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can continue to change for the worse.

Be sure to check out today's Massachusetts mortgage rates.
 

Mortgage Rate Forecast for Massachusetts for April 22, 2010

Here are some of the events affecting mortgage rates today in Massachusetts:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.47 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 100.50 - up 1/32 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 3-23-2010 to 4-22-2010:

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 about the same in price this morning as compared to yesterday.

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

• Jobless Claims - 456,000 new claims for unemployment were filed last week, the first decline in three weeks. This is 4,000 less claims for benefits than expected, and 28,000 less than the previous week. The four-week average for unemployment is up by 3,500 to 460,250. Continuing claims for the week of April 10 fell by 40,000 to 4.646 million. All signs indicate the economy has been recovering of late - but without an increase in jobs. This data is usually not considered to be very important to the mortgage market and had no effect on mortgage rates this morning.
  
  
• Producer Price Index (PPI) - rose 0.7% in March, and is a reversal from the 0.6% decline in February. This means that prices paid at the producer level rose more than thought. The increase in the PPI was attributed mostly to an increase in food and energy costs. At the core level, the PPI remained steady at an increase of just 0.1%. The core level excludes the more volatile food and energy prices. Rising prices increases the fear of inflation and tends to have a negative impact on the mortgage market. While significant, this report had no impact on mortgage rates this morning as the core rate came in as expected.
  
  
• Existing Home Sales Report - released by the National Association of Realtors (NAR), this report provides us with a measurement of housing sector strength and mortgage credit demand. Existing home sales increased 6.8% in March to an annualized rate of 5.35 million homes, the highest level since December. Analysts were expecting a 5.2% increase. Existing home sales are up 16.1% from a year ago. First-time home buyers made up 44% of all home sales, while distressed homes made up 36% of the total sales. 27% of all homes were sold for cash. In addition, the inventory of unsold homes decreased to an 8.0 month supply. This shows that the housing market may be stabilizing, but the homebuyer tax credit could be having an impact on the surge in home sales. While significant, this report had no impact on the mortgage market or mortgage rates this morning.

In other news, the Treasury Dept will announce later this morning 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 the results of these auctions could result in higher mortgage rates next week.

What's Happening With Mortgage Interest Rates in Massachusetts Today:

Moderate to High Volatility. Mortgage rates are off their historic lows, and while they rose significantly a couple of weeks ago, they have since come back down a bit. But this may be temporary.

The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.

As such, there's little or no potential for lower mortgage rates anytime soon. 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.

If I were applying for a mortgage today, I would lock in my rate. However, if I were to continue floating my rate, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can continue to change for the worse.

Be sure to check out the current Massachusetts mortgage rates.

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Mortgage Rate Forecast for Massachusetts for April 21, 2010

Here are some of the events affecting mortgage rates today in Massachusetts:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.25 this morning - the same as yesterday's close.
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 100.31 - 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 3-22-2010 to 4-21-2010:

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 about the same in price this morning as compared to yesterday.

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

• There are no economic reports scheduled for release today.

What's Happening With Mortgage Interest Rates in Massachusetts Today:

Low to Moderate Volatility. Mortgage rates are off their historic lows, and while they rose significantly a couple of weeks ago, they have since come back down a bit. But this may be temporary. Because there are no economic reports scheduled for release today, mortgage rates could be heavily influenced by the stock markets.

The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.

As such, there's little or no potential for lower mortgage rates anytime soon. 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.

If I were applying for a mortgage today, I would lock in my rate. However, if I were to continue floating my rate, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can continue to change for the worse.

Get current Massachusetts mortgage rates.

Mortgage Rate Forecast for Massachusetts for April 20, 2010

Here are some of the events affecting mortgage rates today in Massachusetts:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.22 this morning - the same as yesterday's close.
  
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 100.16 - 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 3-21-2010 to 4-20-2010:

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 Massachusetts Today:

• There are no economic reports scheduled for release today.

What's Happening With Mortgage Interest Rates in Massachusetts Today:

Low to Moderate Volatility. Mortgage rates are off their historic lows, and while they rose significantly a couple of weeks ago, they have since come back down a bit. But this may be temporary. Because there are no economic reports scheduled for release today, mortgage rates could be heavily influenced by the stock markets.

The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.

As such, there's little or no potential for lower mortgage rates anytime soon. 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.

If I were applying for a mortgage today, I would lock in my rate. However, if I were to continue floating my rate, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can continue to change for the worse.

Get current Massachusetts mortgage rates.