Professional Home Staging and Photography Blog: Mortgage Rate Forecast for Wareham MA for February 23, 2010

Mortgage Rate Forecast for Wareham MA for February 23, 2010

Mortgage Rate Forecast for Wareham MA for February 23, 2010

Here are some of the events affecting mortgage rates today in Wareham, MA.

What Mortgage Backed Securities Are Doing Today:

  • The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.38 this morning - the same as yesterday's close.


  • At 9:30, the 4.5% MBS coupon was trading at 100.53 - up 5/32 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 1-24-2010 to 2-23-2010:

The price trend of the FNMA 30-Year 4.5% coupon from 1-24-2010 to 2-23-2010

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.250% better in price this morning as compared to yesterday.

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

  • Consumer Confidence Index (CCI) - consumer confidence for February fell 9.9 points to 46.0. Posted by the Conference Board, this measures consumer willingness to spend. As a comparison, a reading of 80 or better is considered a signal of economic health. Retail sales typically move in tandem with consumer optimism. Because consumer spending makes up two-thirds of the U.S. economy, any related data is watched closely by market traders and can have a significant influence on the mortgage market. If consumers are less confident in their personal financial situations, they are less likely to make large purchases. The lower CCI readings will help bring lower mortgage rates this morning.

In other news, the Case-Shiller Home Price Index revealed that home prices slipped another 0.2% in December, and follows a 0.2% decline in November. Home prices are down an average 3.1% since December 2008.

James O'Sullivan, chief economist at MF Global Ltd., says the plunge in housing prices is over. Watch this video from Bloomberg to learn more:


The Treasure Dept. will be auctioning $44 billion of 2-Year Notes today. 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 current mortgage rates for Wareham, MA.

 

East Bridgewater, MA 02333
Phone: (508) 443-1332

Lew Corcoran, ASP®, IAHSP, IAHSP-CB
Accredited Home Staging Professional
Professional Real Estate Photographer

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Comment balloon 2 commentsLew Corcoran, ASP® • February 23 2010 09:23AM

Comments

 

 

We have been noting the strength of the mortgage market compared to treasuries, especially the 10 yr note. The spread between the yield on the 10 yr and 30 yr fixed Fannies is at its narrowest now since 1984. Even with the Fed exiting the MBS market at the end of this month, the spread is narrowing contrary to the widely held belief that the spread would begin to widen. Investors are more favorable toward mortgages based on the increasing view that rate volatility will remain subdued. As of Mar 3rd the Fed has completed $1.22T of the $1.25T committed by the end of the month.

 

 

Posted by Tim Sturtevant (Guaranteed Rate) over 8 years ago

Good info

Posted by Tim Sturtevant (Guaranteed Rate) about 8 years ago

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