The Mortgage Interest Rate Lock Advisory for Wareham MA for December 8, 2009
Here are some of the events affecting mortgage interest rates today in Wareham, MA.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.0% MBS coupon opened at 99.31 this morning - the same as yesterday's close.
The chart below shows today's price trend of the FNMA 30-Year 4.0% coupon:
The FNMA 30-Year 4.0% MBS coupon is currently trading at 99.41 - up 3/32 from its opening. It was up as high as 99.71 this morning - up 14/32 from its opening - but have fallen ahead of the posting of the results of the 3-Yr Notes auction early this afternoon. 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 0.125% - 0.25% better in price this morning as compared to yesterday.
Recent Activity in Mortgage Backed Securities:
The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days:
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- There are no economic reports scheduled for release today.
In other news, the Treasury Dept. will auction $40 billion in 3-Yr Notes today. For months, the demand for US debt has been very strong as the dollar fell in value. However, it might be a little more difficult to auction Notes and Bonds this week given uncertainty over the direction of the dollar. This could potentially lead to higher mortgage interest rates this afternoon.
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Overall, expect to see high volatility in mortgage market in the latter part of the week. The release of the Retail Sales report on Friday can cause a great deal of movement in mortgage interest rates, but Wednesday's and Thursday's Treasury auctions may also have an impact on the mortgage market and mortgage interest rates.
There's not much room for MBS prices to move higher or for mortgage interest rates to move lower at the moment. Mortgage interest rates are still at historic lows. 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. While there's still some room for MBS prices to tick higher, it's better to have locked when you should have floated than it is to float when you should have locked.
If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional. Also, give very serious consideration to applying now and locking in before mortgage interest rates get worse.
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 Wareham, MA.