The Mortgage Interest Rate Lock Advisory for Worcester MA for November 13, 2009
Here are some of the events affecting mortgage interest rates today in Worcester, MA.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.50 this morning - the same as yesterday's close.
The chart below shows today's price trend of the FNMA 30-Year 4.5% coupon:
The FNMA 30-Year 4.5% MBS coupon is currently trading at 101.63 - up 4/32 from its opening. Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and mortgage interest rates come down with it. I expect that mortgage interest rates will be 0.125% - 0.375% better in price this morning as compared to yesterday.
Recent Activity in Mortgage Backed Securities:
The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Goods and Services Trade Balance Report for September - the trade deficit is up significantly. The trade balance in September was -$36.5 billion, and is much more than the $30.7 billion deficit the previous month. While the report affects the value of the U.S. dollar, it's usually is not a major influence on the mortgage market or mortgage interest rates.
- Preliminary Reading of the University of Michigan's Index of Consumer Sentiment for November - consumer sentiment declined 4.6 points from 70.6 to 66.0 in October. A declining sentiment means consumers are less optimistic about their own financial situations and are less likely to make large purchases in the near future. That is helping drive prices of mortgage backed securities up and mortgage interest rates down this morning.
There are a number of economic reports scheduled for release next week. Watch for more information on Monday.
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Overall, activity in the stock markets will continue to be volatile which in will have an impact on trading of mortgage backed securities.
Yesterday, the 4.5% mortgage backed security (MBS) coupon closed at 101.50. That is within 100 basis points of the highest price that the 4.5 MBS coupon has been at this year - it was at 102.50 back on March 18th.
Currently, the 4.5 MBS coupon is within 31 basis points of the highest price in the last 3 months. The highest price of the 4.5% MBS coupon in the last 3 months was 101.94, and that was back on October 7th.
What that means to you is the pricing of the MBS coupon is not likely to go much higher.
There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. While there's still some room for MBS prices to tick higher, it's better to have locked when you should have floated than it is to float when you should have locked.
If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.
My Mortgage Interest Rate Lock Advice for Today:
If I were considering financing/refinancing a home, I would...
- Lock if my closing was taking place within the next 7 days
- Float if my closing was taking place between 8 and 30 days
- Float if my closing was taking place between 31 and 45 days
- Float if my closing was taking place between 46 and 60 days
This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers.
Get today's mortgage interest rates for your situation in Worcester, MA.
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