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Mortgage Rate Forecast for Falmouth MA for April 15, 2010

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

Mortgage Rate Forecast for Falmouth MA for April 15, 2010

Here are some of the events affecting mortgage 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 99.97 this morning - the same as yesterday's close.

  • At 9:30 AM, the 4.5% MBS coupon was trading at 99.94 - down 1/32 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 3-16-2010 to 4-15-2010:

The price trend of the FNMA 30-Year 4.5% coupon from 3-16-2010 to 4-15-2010

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. However, mortgages rates are up from early yesterday's trading. I expect that mortgage rates will be about the same in price this morning as compared to yesterday afternoon.

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

  • Jobless Claims - 484,000 new claims for unemployment were filed last week, the highest since February. This is 44,000 more claims for benefits than expected, and 24,000 more than the previous week. The four-week average for unemployment is up by 7,500 to 457,750. Continuing claims for the week of April 3 rose by 73,000 to 4.639 million. All signs indicate the economy has been recovering of late - but without an increase in jobs. This data is usually not considered to be very important to the mortgage market and had no effect on mortgage rates this morning.

  • Industrial Production Report - there was a 0.1% increase in production in March, much worse than the 0.8% rise that was expected, and is the same as the 0.1% increase in February. The decrease in March is due primarily to a decline in utilities output. On average, manufacturing is improving, and is up 0.9% in March. While this report has no impact on mortgage rates this morning, a continuing upward trend in manufacturing could lead to higher interest rates soon.

According to RealtyTrac, foreclosures are up 16% in the first quarter of this year from a year ago. More homes were scheduled for foreclosure sale than in any quarter since January 2005. Watch this video from Bloomberg to learn more:

What's Happening With Mortgage Interest Rates in Falmouth, MA Today:

Moderate to High Volatility. Mortgage rates are off their historic lows, and while they rose significantly last week, they have since come back down a bit. But this may be temporary.

The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.

As such, there's little or no potential for lower mortgage rates anytime soon. If you're happy with the interest rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. It's better to have locked when you should have floated than it is to float when you should have locked.

If I were applying for a mortgage today, I would float for now. However, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can continue to change for the worse.

Get current mortgage rates for 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
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Foxborough, MA 02035
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