The Mortgage Interest Rate Lock Advisory for Augusta ME for October 7, 2009

The Mortgage Interest Rate Lock Advisory for Augusta ME for October 7, 2009

Here are some of the events affecting mortgage interest rates today in Augusta, Maine.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.81 this morning - up 4/32 from yesterday's close.

The 4.5% MBS coupon closed at 101.69 yesterday - up 1/32 from its opening - and is currently trading at 101.81 - up 4/32 from yesterday's close (as shown by the blue line).

The chart below shows today's price trend of the FNMA 30-Year 4.5% coupon:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:

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 0.0% - 0.125% better in price this morning as compared to yesterday.

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

• There are no economic reports scheduled for release today.
  
  
• The results of the 10-Year Treasury Note Auction will be posted at 1 pm this afternoon. The results of the auction will give us an important measure of investor interest in U.S. debt, particularly from international buyers. If the auction is met with a strong demand, we should see the mortgage market rally and mortgage interest rates move lower. However, a lackluster interest in the auction could lead to higher mortgage interest rates.

What's Happening With Mortgage Interest Rates Today:

Low to moderate volatility. Overall, I don't expect mortgage interest rates to move much and will be influenced mostly by the stock markets today.

My Mortgage Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within the next 7 days
• Float if my closing was taking place between 8 and 30 days
• Float if my closing was taking place between 31 and 45 days
• Float if my closing was taking place between 46 and 60 days

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers.

For the best mortgage interest rates in Augusta, ME, click here.