Mortgage Rate Forecast for Dennis MA for March 29, 2010
Here are some of the events affecting mortgage rates today in Dennis, MA:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.44 this morning - the same as yesterday's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 100.47 - 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 2-27-2010 to 3-29-2010:
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 Dennis, MA Today:
- Personal Income and Outlays Report - there was a less than 0.1% increase in personal income in February. This follows a revised gain of 0.3% in January and a gain of 0.4% in December. Consumer spending increased by 0.3% as expected. The spending increase is attributed mostly to rising gasoline prices. This report provides us with a measurement of the consumer's ability to spend and their current spending habits. Because consumer spending makes up two-thirds of the U.S. economy, any related data usually has an impact on the mortgage market and mortgage rates. This report had no impact on mortgage rates this morning.
Do budget deficits really affect interest rates? Or does inflation? Find out more by watching this video from CNBC:
What's Happening With Mortgage Interest Rates in Dennis, MA Today:
Moderate to High Volatility. Mortgage rates are off their historic lows, and appear poised to begin climbing. 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 this week. When that happens, pundits are expecting mortgage rates to get worse by 0.25% - 0.75% in rate as the year wears on. 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 Dennis, MA.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB