The Mortgage Interest Rate Lock Advisory for Mashpee MA for November 19, 2009
Here are some of the events affecting mortgage interest rates today in Mashpee, MA.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.75 this morning - up 2/32 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 101.75 - the same as it 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 about the same in price this morning as compared to yesterday.
Recent Activity in Mortgage Backed Securities:
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:
- Leading Economic Indicators (LEI) -the Conference Board reported the LEI increased 0.3% in October, slightly less that 0.4% increase analysts expected. This follows a 1.0% increases the previous months. This report attempts to predict economic activity over the next three to six months. This means that analysts are forecasting an small increase in economic activity over the next few months. However, this report usually does not have much of an impact on the mortgage market.
- Jobless Claims -505,000 new claims for unemployment were filed last week - in line with estimates. This is slightly more than the 502,000 new claims filed the previous week. The 4-week average declined by 4,500 to 519,750 - the lowest since November 2008. And, continuing claims declined by 139,000 to 5.631 million. However, most of the decline in continuing claims is attributed to the expiration of unemployment benefits. With a decreasing trend in the filing of new claims for unemployment, this suggests that the labor market is improving. However, this data is usually not considered to be very important to the mortgage market.
- Fed's MBS Purchase Program - The results of this week's purchases of mortgage backed securities by the Feds will be released in the afternoon. As of last Thursday, the Feds have purchased over $1.006 trillion in mortgage backed securities this year. The Feds plan on purchasing up to $1.25 trillion in mortgage backed securities through March 31st.
Is inflation looming around the corner? Watch this video from CNBC on today's economic reports:
What's Happening With Mortgage Interest Rates Today:
Moderate Volatility. There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. Mortgage rates are currently inching upwards again. If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.
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.
Get today's mortgage interest rates for your situation in Mashpee, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB