The Mortgage Interest Rate Lock Advisory for Wellfleet MA for January 25, 2010
Here are some of the events affecting mortgage interest rates today in Wellfleet, MA.
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.91 this morning - the same as Friday's close.
- At 10:15 am, the 4.5% MBS coupon was trading at 100.84 - down 2/32 from 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 12-26-2009 to 1-25-2010:
Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. Due to a lower closing in mortgage backed securities on Friday, I expect that mortgage interest rates will be 0.125% - 0.25% worse in price this morning as compared to Friday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today
- Existing Home Sales Report for December - released by the National Association of Realtors (NAR), this report will provide us with a measurement of housing sector strength and mortgage credit demand. Existing home sales fell 16.7% in December, much more than expected, and is the largest monthly decline since 1968. Existing home sales fell to an annualized rate of 6.54 million, down from the annualized rate of 5.90 million in November. This drop follows the expected expiration of the first-time homebuyer tax credit in November. Many first-time homebuyers made settlement on their new homes before the original expiration of the tax credit in November. However, the tax credit has been expanded, and was extended to April, 2010. While significant, this data usually does not have an impact on the mortgage market unless it varies greatly from forecasts.
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Mortgage interest rates are still at historic lows. 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. While there's still some room for MBS prices to tick higher, it's better to have locked when you should have floated than it is to float when you should have locked.
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.
Get current mortgage interest rates for your situation in Wellfleet, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB