The Mortgage Interest Rate Lock Advisory for Dennis MA for November 24, 2009
Here are some of the events affecting mortgage interest rates today in Dennis, MA.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.03 this morning - up 1/32 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 102.16 - up 6/32 from it's 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 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:
- Consumer Confidence Index (CCI) for November - the CCI came in with a reading of 49.5, a little better than expected. This means that consumers are more optimistic about their own financial situations than many had thought. Rising confidence means consumers are more apt to make large purchases in the near future, effectively fueling economic growth. However, this report had no impact on mortgage interest rates this morning.
- 3rd Quarter Gross Domestic Product (GDP) - annual rate of growth came in at 2.8% as expected. This means that the economy did not grow as much during the 3rd quarter than previously thought. Because the GDP came in as expected, this report had no impact on mortgage interest rates this morning.
In other news, the 5-year Note auction is being held today. If the auction is met with strong demand, we should see mortgage interest rates continue to stay down. However, if these auctions are met with lackluster demand, we may see an increase in mortgage interest rates this week.
The minutes of the last FOMC meeting will be released at 2 PM today. The minutes may or may not have an impact on the mortgage market - it will depend on what's in the minutes. The key will be concerns over inflation and the Fed's next move. If the Fed members were concerned about inflationary pressures and overly optimistic about economic growth, we could see prices of mortgage backed securities move lower and mortgage interest rates move higher later this afternoon
What's Happening With Mortgage Interest Rates Today:
Low to 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
- 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 Dennis, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB