The Mortgage Interest Rate Lock Advisory for Truro MA for December 29, 2009
Here are some of the events affecting mortgage interest rates today in Truro, MA.
What the Mortgage Backed Securities Market is Doing Today:
The price of the FNMA 30-Year 4.5% MBS coupon opened at 99.50 this morning - down 2/32 from yesterday's close.
The 4.5% MBS coupon is currently trading at 99.62 - up 4/32 from its opening this morning. 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 essentially be the same in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today
- Consumer Confidence Index (CCI) for December - came in at 52.9, slightly less than a reading of 53.0 that analysts were expecting, but is up from the 49.5 reading in November. Posted by the Conference Board, this measures consumer willingness to spend. Because consumer spending makes up two-thirds of the U.S. economy, any related data is watched closely by market traders and can have a significant influence on the mortgage market. If consumers are more confident in their personal financial situations, they are more apt to make large purchases. This CCI reading could lead to lower mortgage interest rates this morning.
In other news, 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. The 20-index came in at 146.58 for October, barely more than the 146.51 reading in September. Home prices are down at an annualized rate of 7.3% vs. a 9.4% annualized rate of decline in September. This shows that price declines in homes continue to ease, but have not yet bottomed.
The Feds will auction $42 billion in 5-Year Notes today; the results will be posted at 1 PM. The auction supply will weigh heavily on the bond and mortgage markets on mounting concern that demand from foreign central banks may lessen on concerns the US federal debt is too great. This could lead to higher mortgage interest rates.
Are mortgage interest rates “ready to pop?” Watch this video from CNBC to find out:
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. As we saw last week, a shortened holiday trading week by no means translates into calmness in the mortgage market. The bond and mortgage markets will close early Thursday at 2 PM, and will be closed all day Friday in observance of New Years Day. This means that trades in mortgage backed securities will light during the latter part of the week. This raises the possibility of stronger reactions to surprises in the mortgage market from economic data than we normally would see.
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 Truro, MA.