Mortgage Rate Forecast for Plymouth MA for February 22, 2010
Here are some of the events affecting mortgage rates today in Plymouth, MA.
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.28 this morning - the same as Friday's close.
- At 9:30, the 4.5% MBS coupon was trading at 100.22 - 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 1-23-2010 to 2-22-2010:
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 the same in price this morning as compared to Friday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- There are no economic reports scheduled for release today.
In other news, the Treasure Dept. will be auctioning $8 billion of 30-year Treasury Inflation Protected Securities (TIPS) today, the first TIPS auction since 2002, and will post results at 1:00 PM ET. The Notes and Bonds are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates.
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 last week by a 1/4 point. Also, the Fed continues to auction Treasury Notes and Bonds to pay for the increasing massive government debt, all of which contributes 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 very little potential for lower mortgage rates.
Mortgage rates continued rising yesterday and again this morning. If you have not yet locked in your mortgage rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage 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 Plymouth, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB