Mortgage Rate Forecast for Bourne MA for March 19, 2010
Here are some of the events affecting mortgage rates today in Bourne, 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 yesterday's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 100.81 - down 3/32 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 2-17-2010 to 3-19-2010:
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 up to 0.250 points worse in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates in Bourne, MA Today:
- There are no economic reports scheduled for release today.
In other news, today is "triple-witching" day. Triple witching day is the third Friday of the month that ends each quarter, and marks the simultaneous expiration of stock options, index options, and index futures at the close of the trading day. That could lead to volatility in the stock market as well as the bond and mortgage markets today.
What's Happening With Mortgage Interest Rates in Bourne, MA Today:
Moderate to High Volatility. Mortgage rates are off their historic lows. However, for the most part, they are still low and holding fairly steady right now. It appears that the overall economy is improving. As such, there's very little potential for lower mortgage rates.
In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. When that happens, pundits are expecting mortgage rates to get worse by 0.25% - 0.75% in rate. This means that a 30 year fixed rate today of 5.0% with no points could soon be between 5.25% and 6.00%. For a $200,000 mortgage, every 1/4 point increase in rate means an increase of $30 in monthly payment.
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 today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. 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 Bourne, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB