The Mortgage Interest Rate Lock Advisory for Eastham MA for January 22, 2010
Here are some of the events affecting mortgage interest rates today in Eastham, MA.
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.06 this morning - the same as yesterday's close.
- The 4.5% MBS coupon is currently trading at 100.94 - 4/32 less than 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 down, the yield goes up - and so do mortgage interest rates. I expect that mortgage interest rates will be 0.0% - 0.25% worse in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today
- There are no economic reports scheduled for release today.
In other news, the Treasury Dept. will auction $118 billion in bond auctions next week: 2-Year Notes on Tuesday, 5-Year Notes on Wednesday, and 7-Year Notes on Thursday. If we see a strong demand for bonds, mortgage rates should improve next week. However, weak demand for bonds will likely push mortgage rates higher.
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 Eastham, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB