Mortgage Rate Forecast for South Yarmouth MA for March 26, 2010
Here are some of the events affecting mortgage rates today in South Yarmouth, 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 100.16 - up 1/32 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 2-24-2010 to 3-26-2010:
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 afternoon.
Economic Reports, News, and Events Affecting Mortgage Interest Rates in South Yarmouth, MA Today:
- Final Revision to the 4th Quarter Gross Domestic Product (GDP) - the GDP in the 4th Quarter of 2009 was revised downward from 5.9% to an annualized rate of 5.6%. But the growth is not expected to last. Many economists believe that the current growth rate is about half what it was just a few months ago. The increase in GDP in the 4th quarter was due primarily to businesses replenishing their inventories, not from increased consumer spending. So far, this has been a jobless recovery. As confidence remains low and unemployment remains high, it's not expected that consumers will be purchasing more goods again any time soon. While significant, the data usually does not have an impact on the mortgage market or mortgage rates.
- The Revised University of Michigan Index of Consumer Sentiment - came in at 73.6, better than the 73.0 reading analysts were expecting, and higher than the 72.5 reading the previous month. An increase in consumer confidence indicates that consumers may be more apt to make large purchases in the near future. However, the report had no impact on mortgage rates this morning.
In other news, there was less than stellar interest in the 7-Year Notes auction yesterday which led to higher than expected yields. According to traders on Wall Street, the spike in mortgage rates the last two days was the result of less demand for US debt and the passage of the health care bill. This kept mortgage rates up yesterday.
What's Happening With Mortgage Interest Rates in South Yarmouth, 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.
We're also starting to enter the prime home selling and buying season. Usually from this time of the year and into the summer months, you see higher mortgage rates. 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.
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 South Yarmouth, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB