The Mortgage Interest Rate Lock Advisory for Orleans MA for January 21, 2010
Here are some of the events affecting mortgage interest rates today in Orleans, MA.
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.84 this morning - the same as yesterday's close.
- The 4.5% MBS coupon is currently trading at 100.84 - the same as its opening.
Price Trend in Mortgage Backed Securities:
The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 12-22-2009 to 1-21-2010:
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 the same in price this morning as compared to yesterday.
In other news, the Treasury Dept. will announce later today $118 billion in bond auctions for next week: 2-Year Notes on Tuesday, 5-Year Notes on Wednesday, and 7-Year Notes on Thursday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today
- Jobless Claims - 482,000 new claims for unemployment were filed last week, much more than expected, and substantially more than the 444,000 claims filed the previous week. Analysts predicted there would be 440,000 new claims for unemployment. However, the four-week average declined another 9,000 to 440,750, continuing the downtrend for the 19th straight week. Continuing claims is also down from 4.617 million the previous week to 4.599 million. With an overall 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.
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Mortgage interest rates are still at historic lows. There's not much potential for MBS prices to tick higher (lower mortgage rates) as the Fed begins winding down their stimulus programs soon as it appears the overall economy is improving. There's also the fear of inflation.
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. It's better to have locked when you should have floated than it is to float when you should have locked.
Mortgage rates are currently improving. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional and rates can change for the worse - often without notice.
Get current mortgage interest rates for your situation in Orleans, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB