The Mortgage Interest Rate Lock Advisory for Bourne MA for November 16, 2009

The Mortgage Interest Rate Lock Advisory for Bourne MA for November 16, 2009

Here are some of the events affecting mortgage interest rates today in Bourne, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.84 this morning - up 1/32 from Friday'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 101.84 - the same as 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 the same in price this morning as compared to Friday's close.

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:

Recent Activity in Mortgage Backed Securities:

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

• Retail Sales Report for October - released by the Commerce Department this report measures consumer spending which is considered important as it makes up two-thirds of the economy. The report revealed a 1.4% increase in retails sales in October, up significantly from the 1.5% decline in September. Analysts expected the report to show a 0.9% rise in spending in October. The increase in retail sales is largely attributed to a 7.9% increase in auto sales after a 14.3% decline the previous month. If auto sales are excluded, retail sales improved only 0.2% which follows a 0.4% increase the previous month. Today's retail sales report had no impact on the mortgage market today.

In other news, Ben Bernanke, Chairman of the Federal Reserve, is speaking to the Economic Club of New York today.

What's Happening With Mortgage Interest Rates Today:

Low to Moderate Volatility. Overall, the first three days of the week will be the most important with the release of the Retail Sales Report, the Producer Price Index and the Consumer Price Index reports.

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 the best available mortgage interest rates for your situation in Bourne, MA!