Mortgage Rate Forecast for Barnstable MA for March 25, 2010
Here are some of the events affecting mortgage rates today in Barnstable, MA:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.12 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 2-23-2010 to 3-25-2010:
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 the end of business yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates in Barnstable, MA Today:
- Jobless Claims - 442,000 new claims for unemployment were filed last week. This is 8,000 less than expected, and 17,000 less than the previous week. The four-week average for unemployment fell by 17,500 to 453,750, the lowest since September 2008. All signs indicate the economy has been recovering of late - but without an increase in jobs. This data is usually not considered to be very important to the mortgage market, and had no impact on the mortgage market or mortgage rates this morning.
In other news, there was less than stellar interest in the 5-Year Notes auction yesterday which led to higher than expected yields. This drove mortgage rates up significantly yesterday. Watch this video from CNBC to learn more:
The Treasury Dept will be auctioning $37 billion in 7-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 Barnstable, MA Today:
Moderate to High Volatility. Mortgage rates are off their historic lows, and appear poised to begin climbing. It appears that the overall economy is improving while at the same time the federal government keeps accumulating more and more debt. As such, there's little or no 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 continue to 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 Barnstable, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB