The Mortgage Interest Rate Lock Advisory for Eastham MA for December 1, 2009
Here are some of the events affecting mortgage interest rates today in Eastham, MA.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.0% MBS coupon opened at 100.19 this morning - down 7/32 from yesterday's close.
The chart below shows today's price trend of the FNMA 30-Year 4.0% coupon:
The FNMA 30-Year 4.0% MBS coupon is currently trading at 100.13 - down 2/32 from its opening. Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. I expect that mortgage interest rates will be 0.0% - 0.25% worse 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 4.0% coupon over the past 30 days:
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Institute for Supply Management (ISM) Manufacturing Index for November -the reading came in at 53.6, less than 55.0 reading that analysts expected. The reading was 55.7 in October. This index surveys more than 300 manufacturing firms on employment, production, new orders, supplier deliveries, and inventories to gauge their sentiment. A reading above 50 means that more manufacturing executives felt business improved during the month than those who felt it had worsened. A lower than expected reading will indicate a waning sentiment in the manufacturing sector, and makes a broader economic recovery less likely. This had almost no affect on mortgage interest rates this morning.
In other news, pending home sales is up for the 9th straight month. Pending home sales was up 3.7% in October, but is less than the 6.0% increase in September. Year-to-year pending home sales is up 31.8%.
Watch this video fromCNBC to learn more about pending home sales:
Construction spending was flat in October, after declining a revised 1.6% in September. Year-to-year construction spending is down 14.4%
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Overall, we may see sizable movement in mortgage interest rates this week. I suspect it will be a fairly active week for the mortgage market and mortgage interest rates. The most important day of the week will be Friday with the release of the Employment Situation Report. This report will probably be the key to rates moving lower or higher for the week. If it reveals stronger than expected results, we may see mortgage interest rates spike higher - possibly erasing any gains from the week.
There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. Mortgage interest rates are at historic lows. 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
- Lock 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 Eastham, MA.
Comments(0)