Special offer

The Mortgage Interest Rate Lock Advisory for Falmouth MA for February 3, 2010

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

The Mortgage Interest Rate Lock Advisory for Falmouth MA for February 3, 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 101.03 this morning - the same as yesterday's close.

  • The 4.5% MBS coupon is currently trading at 100.88 - down 3/32 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 1-3-2010 to 2-2-2010:

The price trend of the FNMA 30-Year 4.5% coupon from 1-3-2010 to 2-2-2010

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 0.125% - 0.25% worse in price this morning as compared to yesterday.

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

  • ADP Employment Report for January - employers cut another 22,000 private jobs last month. This is the lowest monthly jobs cut in two years, and follows a revised 61,000 jobs cut in December. This report shows that not as many people are losing their jobs compared to a year ago. This report resulted in slightly higher mortgage interest rates this morning.

  • Institute for Supply Management's (ISM) - is up 7/10ths in January with a reading of 50.5. While a reading above 50 indicates manufacturing sector expansion rather than contraction, this indicates that the economy was relatively flat last month. This report had no impact on mortgage interest rates this morning.

In other news, the Treasury Dept will announce later this morning $81 billion in Note and Bond auctions scheduled for next week. The Notes and Bonds are used to finance the massive government debt, and could result in upward revisions to mortgage interest rates next week.

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 interest rates are generally holding at currently levels. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage interest rates can change for the worse.

Get current mortgage interest rates for your situation in Falmouth or anywhere else in Massachusetts.

Posted by

 

QR Code for Lew Corcoran

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
D: (508) 258-9658

Follow me on LinkedIn

 

Comments (0)