The Mortgage Interest Rate Lock Advisory for Quincy MA for October 22, 2009
Here are some of the events affecting mortgage interest rates today in Quincy, Massachusetts.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.59 this morning - down 13/32 from yesterday's close.
The chart below shows today's price trend of the FNMA 30-Year 4.5% coupon:
The FNMA 30-Year 4.5% MBS coupon is currently trading at 100.63 - up 3/32 from its opening. 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.
The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Existing Home Sales for September - existing home sales was up 9.4% at an annualized rate of 5.57 million in September, more than expected and the largest rise in more than 2 years, and is up from the 5.10 million annualized rate in August. This increase is ahead of the expiration of the first-time homebuyer tax credit at the end of next month. The inventory of existing home for sale fell to 7.8 months, down from 9.3 months the previous month. However, prices of homes continue to fall. Prices are down 1.4% in September, and are down at an annualized rate of 8.5%. This report gives us an indication of housing sector strength and mortgage credit demand by tracking home resales. However, this report usually doesn't have much of an impact on the mortgage market.
Watch this video from MSNBC to learn more about the housing market:
In other news, the Treasury Dept. announced yesterday the auction of $44 billion in 2-Year Notes, $41 billion of 5-Year Notes, and $31 billion of 7-yr notes next week.
There are a number of important economic reports scheduled for release next week. Look for more information on Monday.
What's Happening With Mortgage Interest Rates Today:
Moderate volatility. Overall, expect the mortgage market to be heavily influenced mostly by the stock markets 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
- Lock 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.
Get today's mortgage interest rates for your situation in Quincy, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB