The Mortgage Interest Rate Lock Advisory for Nashua NH for October 27, 2009

The Mortgage Interest Rate Lock Advisory for Nashua NH for October 27, 2009

Here are some of the events affecting mortgage interest rates today in Nashua, NH.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.31 this morning - up 1/32 from yesterday's close.

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

The FNMA 30-Year 4.5% MBS coupon is currently trading at 100.44 - up 4/32 from its opening. 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 essentially be the same in price today as compared to late yesterday afternoon.

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

Recent Activity in Mortgage Backed Securities:

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

• Consumer Confidence Index (CCI) for October - the index revealed a reading of 47.7 - much less than the 54.0 reading that was expected - and is a significant decrease from last month's reading of 53.1. The decline in consumer confidence is over concerns that the job market will get worse. This index is watched closely because consumer spending makes up two-thirds of the U.S. economy. Generally, retail sales follow consumer confidence. The lower the index reading, the less likely consumers are likely to make large purchases in the near future. Because the index reading came in lower than expected, we will likely see lower mortgage interest rates this morning.

In other news, $44 billion in 2-Year Notes are scheduled for auction today. If the auction is met with a strong demand, prices of mortgage backed securities may rise during afternoon trading which may in turn lead to lower mortgage interest rates. But a lackluster demand may cause investors to sell mortgage backed securities which in turn may lead to higher mortgage interest rates.

The S&P/Case-Shiller Home Price Index released today revealed an increase in home prices for the 4th consecutive month. The Case-Shiller Composite 10 index rose 1.3% in August to 157.93 while the Composite 20 rose 1.2% to 146.00. The S&P/Case-Shiller Home Price Index tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S.

While Bank of America sees some appreciation in home prices, Goldman Sachs sees a false button. Watch this video to learn more:

What's Happening With Mortgage Interest Rates Today:

Moderate volatility. Overall, it will be an active - and volatile - week for the mortgage market and mortgage interest rates. The most volatile day of the week most likely will be Thursday with the release of the preliminary 3rd Quarter GDP and the results of the 7-Year Note auction.

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
• Lock 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.

Get today's mortgage interest rates for your situation in Nashua, NH.