The Mortgage Interest Rate Lock Advisory for Wellfleet MA for February 17, 2010

The Mortgage Interest Rate Lock Advisory for Wellfleet MA for February 17, 2010

Here are some of the events affecting mortgage rates today in Wellfleet, 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 Friday's close.
  
  
• At 9:30, the 4.5% MBS coupon was trading at 100.84 - 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 1-18-2010 to 2-17-2010:

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.250% worse in price this morning as compared to yesterday.

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

• Housing Starts for January - housing starts was up in January, and better than expected. Housing starts increased 2.8% to an annualized rate of 591,000 units in January after falling 0.7% December. This indicates that the new housing sector is beginning to recover. However, the number of housing permits issued fell 4.9% in January after a 10.9% increase the previous before. Strong seasonal factors and colder weather makes it difficult for housing starts to find any direction during the winter months. Usually, this report has little to no impact on the mortgage market or mortgage interest rates.
  
  
  
• Industrial Production Report for January - there was a 0.9% increase in production in January, slightly better than expected, and follows a 0.6% increase in December. On average, manufacturing is improving. While this report has no impact on mortgage interest rates this morning, a continuing upward trend in manufacturing could lead to higher interest rates soon.
  
  
  
• Minutes from the Last Federal Open Market Committee (FOMC) Meeting - This will give market participants insight into the Fed's thinking and concerns regarding inflation and monetary policy. It is one of those pieces of information that may cause a great deal of volatility in the markets - or it could be a non-factor, depending on what the minutes show. They will be released at 2:00 PM ET, so they shouldn't affect the markets or mortgage rates until afternoon hours.

What's Happening With Mortgage Rates Today:

Low to Moderate. Mortgage 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 rates.

If you're happy with the rate being offered to you and if you don't want to risk mortgage 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 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 today's mortgage interest rates for your situation in Wellfleet, MA.

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