Mortgage Rate Forecast for Mashpee MA for March 24, 2010
Here are some of the events affecting mortgage rates today in Mashpee, MA:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.03 this morning - the same as yesterday's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 100.80 - down 10/32 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 2-22-2010 to 3-24-2010:
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 Mashpee, MA Today:
- Durable Goods Orders Report - there was a 0.5% increase in new durable goods orders in February, not as much as the 1.0% increase that was expected. This follows a revised 3.0% increase in January and a revised 1.6% increase in December. However, when the transportation component is excluded, new durable goods orders increased 0.9% after falling 0.6% in January. Year-on-year, overall new orders for durable goods are up 10.9% from February 2009. When transportation is excluded, new durable goods orders are up 7.9% from the same time last year. While weakened somewhat, this report shows that the manufacturing sector is still gaining some momentum. This report led to higher mortgage rates this morning.
- New Home Sales - fell 2.2% in February to an annualized rate of 308,000 homes. Analysts were expecting a 1.9% increase. Median prices of new homes fell 1.8% to $203,500. In addition, the inventory of new homes on the market rose again to 9.2 months. It's clear that the extended home buyer tax credit, which is set to expire at the end of April, is not helping. This also shows that housing demand remains weak with no buyer urgency as new home prices continue to fall. While fairly significant, this data did not have much of an impact on the mortgage market this morning.
Are we headed for a double dip in housing? Watch this video from CNBC to learn more about what’s ahead for the housing market:
In other news, the Treasury Dept will be auctioning $42 billion in 5-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 Mashpee, 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 Mashpee, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB