The Mortgage Interest Rate Lock Advisory for Marlborough MA for October 28, 2009
Here are some of the events affecting mortgage interest rates today in Marlborough, MA.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.72 this morning - up 3/32 from yesterday's close.
The FNMA 30-Year 4.5% MBS coupon is currently trading at 100.97 - up 11/32 from its opening. 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 be 0.25% - 0.50% better 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:
Recent Activity in Mortgage Backed Securities:
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Durable Goods Orders for September - there was a 1% increase in new durable goods orders - less than the 1.5% increase that was expected - and follows a 2.4% decline the previous month. Posted by the Commerce Department, this report tracks orders at U.S. factories for big-ticket items which in turn provides a measurement of manufacturing sector strength. This report had little or no impact mortgage interest rates this morning.
- New Home Sales Report for September - sales of new homes fell 3.6% last month to an annualized rate of 402,000, and is down from annualized rate of 429,000 new home sales the previous month. Analysts expected the report to show an increase to an annualized rate of 440,000. The decline sent the stock market lower and added to yesterday's the rally in the mortgage market. This report led to slightly lower mortgage interest rates this morning.
In other news, $41 billion in 5-Year Notes are scheduled for auction today. If the auction is met with a strong demand, prices of mortgage backed securities may rise during afternoon trading which may in turn lead to lower mortgage interest rates. But a lackluster demand may cause investors to sell mortgage backed securities which in turn may lead to higher mortgage interest rates. There was a high demand in the auction of $44 billion in 2-Year Notes yesterday.
What's Happening With Mortgage Interest Rates Today:
Moderate volatility. Overall, it will be an active - and volatile - week for the mortgage market and mortgage interest rates. The most volatile day of the week most likely will be Thursday with the release of the preliminary 3rd Quarter GDP and the results of the 7-Year Note auction.
My Mortgage Interest Rate Lock Advice for Today:
If I were considering financing/refinancing a home, I would...
- Float 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.
Get today's mortgage interest rates for your situation in Marlborough, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB