Mortgage Rate Alert for Massachusetts for April 27, 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 100.16 this morning - the same as yesterday's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 100.41 - up 8/32 from its opening.
- At 12:30 PM, the 4.5% MBS coupon was trading at 100.72 - up 10/32 from 9:30 AM, and up a total of 18/32 since its opening.
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 up to 0.250 points better in price this afternoon as compared to this morning, and up to 0.50 points better in price since yesterday.
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 3-28-2010 to 4-27-2010:
Economic Reports, News, and Events Currently Affecting Mortgage Interest Rates in Massachusetts:
The debt problems in Europe continue to mount. At 11 AM this morning, the S&P lowered ratings on Portugal's debt, and lowered Greece's debt to junk status. This resulted in lower mortgage rates as investors flocked to safety from the stock market to the bond and mortgage backed securities markets. The stock market has plunged 158 points.
Learn more about how the debt downgrade in Greece created volatility in the market in this video from CNBC:
If I were applying for a mortgage this afternoon, I would float my rate. However, 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 change for the worse.
Be sure to check out today's Massachusetts mortgage rates.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB