Mortgage Rate Forecast for Massachusetts for April 20, 2010
Here are some of the events affecting mortgage rates today in Massachusetts:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.22 this morning - the same as yesterday's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 100.16 - down 2/32 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 3-21-2010 to 4-20-2010:
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 Massachusetts Today:
- There are no economic reports scheduled for release today.
What's Happening With Mortgage Interest Rates in Massachusetts Today:
Low to Moderate Volatility. Mortgage rates are off their historic lows, and while they rose significantly a couple of weeks ago, they have since come back down a bit. But this may be temporary. Because there are no economic reports scheduled for release today, mortgage rates could be heavily influenced by the stock markets.
The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.
As such, there's little or no potential for lower mortgage rates anytime soon. 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.
If I were applying for a mortgage today, I would lock in my rate. However, if I were to continue floating my rate, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can continue to change for the worse.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB