Mortgage Rate Forecast for Chatham MA for March 9, 2010
Here are some of the events affecting mortgage rates today in Chatham, MA:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.16 this morning - the same as Friday's close.
- At 9:30, the 4.5% MBS coupon was trading at 101.38 - up 7/32 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 2-7-2010 to 3-9-2010:
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 as much as 0.250% better 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 be auctioning $40 billion in 3-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 and mortgage markets market move higher during afternoon trading which in turn lead to lower mortgage rates. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and could lead to broader selling in the bond and mortgage markets. That in turn could lead to higher mortgage rates this week.
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Mortgage rates are again off their historic lows. It appears that the overall economy is improving. However, 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 have improved slightly this past week. However, 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 Chatham, MA.
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Lew Corcoran, Sr. Mortgage Consultant in Massachusetts |
