Professional Home Staging and Photography Blog: Rate Forecast for June 18, 2010

Rate Forecast for June 18, 2010

Rate Forecast for June 18, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

  • The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.97 this morning - the same as yesterday's close.

  • At 9:30 AM, the 4.5% MBS coupon was trading at 102.94 - down 1/32 from its opening.

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 the same in price this morning as compared to 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 5-19-2010 to 6-18-2010:

The price trend of the FNMA 30-Year 4.5% coupon from 5-19-2010 to 6-18-2010

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

  • There are no economic reports scheduled for release today.

In other news, today is "quadruple witching" day. Quadruple witching refers to the expirations of options and futures contracts that can cause increased volatility in the stock markets. While it has no direct impact on the bond or mortgage markets, this sometimes leads to funds being moved into or out of bonds and mortgage backed securities. Mortgage rates usually are not affected unless the major indexes experience significant swings.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

The trend in mortgage rates from June 17, 2009 to June 17, 2010

Mortgage Rate Lock Advice:

Mortgage rates have returned to their lows of the year. Yesterday, the price of the FNMA 30-Year 4.5% Coupon closed at 102.97, which is only 6 basis points lower than its all-time high of 103.03. After the open this morning, the MBS coupon rose in price, and is now within 6 basis points of its all-time high.

While it's still possible that mortgage rates could go even lower with the ongoing economic crisis in Europe, it won't be by much. So, I would not risk the chance waiting for it.

If I was closing within the next 5 - 7 days, I would lock in the rate.

If you are closing in more than 7 days, send me an email to get my rate lock advice.

Be sure to check out today's mortgage rates.



East Bridgewater, MA 02333
Phone: (508) 443-1332

Lew Corcoran, ASP®, IAHSP, IAHSP-CB
Accredited Home Staging Professional
Professional Real Estate Photographer

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Comment balloon 3 commentsLew Corcoran, ASP® • June 18 2010 12:08PM


Wow!  Rates keep going lower.  Where do you think they'll bottom out?

Posted by Loan Survivor Real Estate Financing Expert (Purchases, First Time Buyers, Pre-Approvals, Refinance) almost 9 years ago

Drew - I think mortgage rates already have hit bottom. Prices of the 4.5% MBS coupon is just 5 basis points of its all-time high set just last week. While it's possible, I don't think there's much room for mortgage rates to go even lower.

Posted by Lew Corcoran, ASP®, Home Stager & Real Estate Photographer (Scena Home Staging & Decora Photography) almost 9 years ago

Great information...We need to keep getting this information  out to our buyer pool and SOI...




Posted by Jennifer Dulmaine, Seth Campbell Realty Group (Keller Williams Realty) almost 9 years ago

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