Mortgage Rates on July 7, 2010 - Improving, or...?
Here are some of the events affecting mortgage rates today:
What Mortgage Backed Securities (MBS) Are Doing Today:
- The price of the FNMA 30-Year 4.0% MBS coupon opened at 101.69 this morning - the same as yesterday's close.
- At 9:30 AM, the 4.0% MBS coupon was trading at 101.75 - up 2/32 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 about the same 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 4.0% coupon over the past 30 days from 6-7-2010 to 7-7-2010:
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- There are no economic reports scheduled for release today.
Trend in Mortgage Rates:
The chart below shows the trend in mortgage rates over the past year:
Mortgage Rate Lock Advice:
Mortgage rates are at historic lows - they have not been this low since the early 1950s - and could possibly go even lower as the global economic crisis continues. However, the stock market is over sold while the bond market is over bought. Rates could be heading up soon as the markets begin to correct themselves. As such, I would not risk the chance waiting for lower mortgage rates.
If I were financing a home or refinancing a mortgage today, I would:
- Lock if my closing was taking place within 7 days
- Lock if my closing was taking place between 8 and 15 days
- Float if my closing was taking place between 16 and 30 days
- Float if my closing was taking place more than 30 days from now
Be sure to check out today's mortgage rates.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB