Mortgage Rate Forecast for Falmouth MA for March 23, 2010
Here are some of the events affecting mortgage rates today in Falmouth, MA:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.06 this morning - the same as yesteray's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 101.09 - 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 2-21-2010 to 3-23-2010:
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 the same in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates in Falmouth, MA Today:
- Existing Home Sales Report - released by the National Association of Realtors (NAR), this report provides us with a measurement of housing sector strength and mortgage credit demand. Existing home sales have fallen since the surge last fall. Existing home sales fell 0.6% in February to an annualized rate of 5.02 million homes, not as bad as expected. Analysts were expecting a 7.2% decline. Distressed homes made up 35% of the total sales. 27% of the homes sold were sold for cash. The inventory of unsold homes increased by 9.5% to an 8.6 month supply. This shows that the housing market is still weak. Existing home sales are up 7.0% from February 2009. While significant, this report had no impact on the mortgage market or mortgage rates this morning.
In other news, the Treasure Dept will be auctioning $44 billion is 2-Year Notes today 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 during afternoon trading. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling of bonds could result in upward revisions to mortgage rates.
What's Happening With Mortgage Interest Rates in Falmouth, 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 Falmouth, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB