The Mortgage Interest Rate Lock Advisory for Concord NH for September 24, 2009
Here are some of the events affecting mortgage interest rates today in Concord, New Hampshire.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened flat this morning - the same as yesterday's close - at 100.94.
The price of the FNMA 30-Year 4.5% MBS coupon closed up 9/32 yesterday at 100.94 (as shown by the white line). MBS is currently trading up 5/32 at 100.81 (as shown by the blue line). 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 essentially be the same in price today as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Durable Goods Orders for August - orders for durable goods came in well below expectations in August. Orders for durable goods fell 2.4%, and is well below the 1.0% increase that was expected. This follows a 4.8% increase in July. This report gives us an indication of manufacturing sector strength by tracking orders placed with manufacturers for immediate and future delivery of durable goods. The transportation sector fell 9.3% as compared to July, mostly due to the 29.9% plunge in aircraft orders. When transportation is excluded, orders for durable goods in August remained unchanged. Decreases in durable goods orders usually leads to an increase in prices of mortgage backed securities and a drop in mortgage interest rates. However, it appears that this report had a minimal impact on the mortgage market this morning.
- University of Michigan's Index of Consumer Sentiment Revised Reading for September - the reading came in at 73.5, and is better than expected. The reading the previous month was 70.2. Normally, a higher than expected reading usually leads to an increase in prices of mortgage backed securities and a drop in mortgage interest rates. However, it appears that this report also had a minimal impact on the mortgage market this morning.
- New Home Sales for August - New home sales fell 9.6% to an annualized rate of 429,000 homes. Analysts expected the report to reveal a slight increase to 445,000 new home sales. While sales of new homes fell, the inventory of new homes on the market also fell. The current inventory now stands at 7.5 months - the lowest level since August 2007. This means that if no new homes come on the market, it will take 7.5 months to sell the current inventory assuming that the rate of sales remains unchanged. However, this data is usually not considered to be very important to the mortgage market.
What's Happening With Mortgage Interest Rates Today:
Low to Moderate Volatility. Overall, look for less volatility in the mortgage market today as compared to yesterday.
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 Concord, NH, click here.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB