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The Mortgage Interest Rate Lock Advisory for Falmouth MA for January 7, 2010

By
Real Estate Agent with Better Living Real Estate, LLC 9152684

The Mortgage Interest Rate Lock Advisory for Falmouth MA for January 7, 2010

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

What Mortgage Backed Securities Are Doing Today:

  • The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.50 this morning - down 3/32 from yesterday's close.

  • The 4.5% MBS coupon is currently trading at 100.45 - 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 0.125% - 0.25% worse 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 12-7-2009 to 1-6-2010:

The price trend of the FNMA 30-Year 4.5% coupon from 12-7-2009 to 1-6-2010

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

  • Jobless Claims - 434,000 new claims for unemployment were filed last week, less than expected. and slightly more than the previous week. Analysts predicted there would be 450,000 new claims. With a decreasing trend in the filing of new claims for unemployment, this suggests that the labor market is improving. However, this data is usually not considered to be very important to the mortgage market.

In other news, the December ADP Employment Report revealed 84,000 private jobs were lost in December. Analysts expected the report to show a loss of 75,000 private jobs. While significant, the report did not have much of an impact on the mortgage market this morning.

Yesterday's release of the minutes of the last FOMC meeting indicates the Fed is not sure we have a solid recovery as they discussed increasing and extending the asset purchase program should the economy weaken. At the same time, they are concerned about the potential for inflation.

"To keep inflation expectations anchored, all participants agreed that monetary policy would need to be responsive to any significant improvement or worsening in the economic outlook and that the Federal Reserve would need to continue to clearly communicate its ability and intent to begin withdrawing monetary policy accommodation at the appropriate time and place," the minutes read.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage interest rates are still at historic lows. There's not much potential for MBS prices to tick higher (lower mortgage rates) as the Fed begins winding down their stimulus programs soon as it appears the overall economy is improving. There's also the fear of inflation.

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. 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 yet, please proceed with caution and maintain contact with your mortgage professional.

Get today's mortgage interest rates for your situation in Falmouth, MA.

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Lew Corcoran
Licensed Massachusetts Real Estate Agent
Accredited Home Staging Professional
Professional Real Estate Photographer
FAA Licensed Drone Pilot

Director, National Board of Directors,
Real Estate Staging Association (RESA)

Better Living Real Estate, LLC
15 Wall Street, #9157
Foxborough, MA 02035
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