The Mortgage Interest Rate Lock Advisory for Medford MA for September 23, 2009
Here are some of the events affecting mortgage interest rates today in Medford, Massachusetts.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened down 6/32 this morning to 100.44.
The price of the FNMA 30-Year 4.5% MBS coupon closed up 7/32 yesterday to 100.63 (as shown by the white line). MBS is currently trading down 4/32 at 100.50 (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. I expect that mortgage interest rates will be 0.125% - 0.25% worse in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- There are no economic reports expected to be released today.
The Federal Open Market Committee (FOMC) will adjourn early this afternoon and issue their press release at 2:15 pm. While there is widespread expectation that key short-term interest rates will remain unchanged, the post-meeting statement could lead to volatility in the mortgage market. Investors will be focusing on any changes in balance sheet expansion or planned unwinding as well as comments on the status of recovery. It's expected the minutes will acknowledge recent improvements in economic activity. At the same time, it will indicate that the recovery is expected to be relatively weak and will persist for some time. If we see any significant weakness in stock markets, then investors may return to the mortgage market as a safe-haven from the volatility. This in turn could lead to lower mortgage interest rates this afternoon.
What's Happening With Mortgage Interest Rates Today:
Low to Moderate Volatility. Overall, look for less volatility in the mortgage market today as there are no economic reports due for release. However, volatility could pick up this afternoon after the FOMC's press release. Otherwise, look for the mortgage market to be heavily influenced by the stock market today.
My Mortgage Interest Rate Lock Advice for Today:
If I were considering financing/refinancing a home, I would...
- Lock if my closing was taking place within the next 7 days
- Float if my closing was taking place between 8 and 30 days
- Float if my closing was taking place between 31 and 45 days
- Float if my closing was taking place between 46 and 60 days
This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers.
For the best mortgage interest rates in Medford, MA, click here.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB