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The Mortgage Interest Rate Lock Advisory for Bourne MA for February 1, 2010

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

The Mortgage Interest Rate Lock Advisory for Bourne MA for February 1, 2010

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

What Mortgage Backed Securities Are Doing Today:

  • The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.09 this morning - the same as Friday's close.

  • The 4.5% MBS coupon is currently trading at 100.78 - down 10/32 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 1-1-2010 to 1-31-2010:

The price trend of the FNMA 30-Year 4.5% coupon from 1-1-2010 to 1-31-2010

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 up to 0.25% worse in price this morning as compared to Friday.

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

  • Personal Income and Outlays data for December - personal income increased 0.4% in December, and follows a gain of 0.4% in November. Consumer spending increased by 0.2%, less than expected, and follows a 0.5% increase in November. Analysts were expecting the report to reveal a 0.3% increase in income, and a 0.3% increase in spending. This report provides us with a measurement of the consumer's ability to spend and their current spending habits. Because consumer spending makes up two-thirds of the U.S. economy, any related data usually has a impact on the mortgage market and mortgage interest rates. This report had little impact on mortgage interest rates this morning.

  • Institute for Supply Management's (ISM) Manufacturing Index for January - The growth in the manufacturing sector is up sharply in January with a reading of 58.4, better than expected, and is better than November's reading of 55.9. A reading above 50 indicates manufacturing sector expansion rather than contraction. And a higher than expected reading in the ISM Index led to higher mortgage interest rates this morning.

  • Construction Spending Report for December - construction spending fell 1.2% in December, worse than expected, and follows a revised 1.2% decline in November. Analysts were expecting a 0.5% decline in December.

In other news, the FDIC closed 6 more banks in Georgia, Florida, Minnesota, California, and Washington last Friday.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage interest rates are still at historic lows. However, because it appears that the overall economy is improving, and because the Fed continues to auction Treasury Notes to pay for the massive government debt, there's the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's not much potential for lower mortgage interest rates.

If you're happy with the rate being offered to you and if you don't want to risk mortgage interest rates moving higher, then 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 interest rates are currently improving slightly. 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 Bourne or anywhere else in Massachusetts.

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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
O: (888) 877-8300
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