The Mortgage Interest Rate Lock Advisory for Provincetown MA for February 19, 2010
Here are some of the events affecting mortgage rates today in Provincetown, MA.
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.16 this morning - the same as yesterday's close.
- At 9:30, the 4.5% MBS coupon was trading at 100.16 - 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 1-20-2010 to 2-19-2010:
Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.375% worse in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Consumer Price Index (CPI) - the overall index is up 0.2%, less than the 0.3% increase that was expected, but more than the 0.1% increase in December. The core data fell 0.1%, and is less than expected. The core data excludes the more volatile food and energy prices. While weaker than expected readings should lead lower mortgage rates tomorrow morning, mortgage rates continued getting worse this morning.
In other news, the Fed raised the Discount Rate by a 1/4 point yesterday afternoon. The Discount Rate is the overnight rate the Fed charges banks for borrowing money to meet their reserve requirements. The move led to higher mortgage rates yesterday afternoon.
Also. the Treasury Dept announced yesterday that $126 billion in the Notes and Bond auctions are scheduled for next week. The Notes and Bonds are used to finance the massive government debt, and the results of these auctions could result in higher mortgage rates next week.
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Mortgage rates are again coming off their historic lows. It appears that the overall economy is improving. The Fed raised the discount rate yesterday by a 1/4 point. Also, the Fed continues to auction Treasury Notes and Bonds to pay for the massive government debt, all of which contribute to the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's not much potential for lower mortgage rates.
Mortgage rates continued rising yesterday and again this morning. 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.
If you're happy with the interest rate being offered to you and if you don't want to risk mortgage rates moving higher, then 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.
Get today's mortgage rates for your situation in Provincetown, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB