The Mortgage Interest Rate Lock Advisory for Provincetown MA for January 27, 2010
Here are some of the events affecting mortgage interest rates today in Provincetown, MA.
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.94 this morning - the same as yesterday's close.
- The 4.5% MBS coupon was up as high as 101.06 this morning, but is now trading at 101.01 - up just 2/32 from its opening.
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 12-27-2009 to 1-26-2010:
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 yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today
- New Home Sales Report for December - this report will provide us with another measurement of housing sector strength and mortgage credit demand. Analysts are expecting the report to show an increased in new home sales to an annualized rate of 440,000. In October, new homes sold at an annualized rate of 430,000. This data usually does not have an impact on the mortgage market unless it varies greatly from forecasts.
In other news,
The Treasury Dept. will auction $42 billion 5-Year Notes today. If there is a strong demand for bonds, mortgage rates should improve this afternoon. However, weak demand for bonds will likely push mortgage rates higher.
The Federal Open Market Committee (FOMC) will conclude its meeting today, and release a statement at 2:15 pm this afternoon. The short-term interest rates are expected to remain at its current level of 0 - 0.25%. However, bond and mortgage backed securities traders will be looking for a signal of the Fed's next move.
Both the results of the 5-Year Note auction and the FOMC statement can cause volatility in the bond and mortgage market this afternoon.
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.
Mortgage rates are currently improving. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional and rates can change for the worse - often without notice.
Get current mortgage interest rates for your situation in Provincetown, MA.