The Mortgage Interest Rate Lock Advisory for Harwich MA for January 15, 2010

The Mortgage Interest Rate Lock Advisory for Harwich MA for January 15, 2010

Here are some of the events affecting mortgage interest rates today in Harwich, MA.

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.38 this morning - the same as yesterday's close.
  
  
• The 4.5% MBS coupon is currently trading at 100.78 - up 13/32 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 be 0.25% - 0.50% better in price this morning as compared to yesterday.

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 12-15-2009 to 1-14-2010:

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

• Consumer Price Index (CPI) for December - was reported as up 0.1% as expected. The core rate (ex food and energy) was up 0.1% - also as expected. This shows that inflation remains in check and is presently not a major concern. Year-to-year, the CPI is up 2.8%, and the core year-to-year is up 1.8%. As there's no fear of inflation, mortgage interest rates improved this morning.
  
  
• Industrial Production for December - industrial production ncreased 0.6% as expected, and capacity use was at 72.0%, slightly more than the 71.9% that was expected. This report usually has little to no impact on the mortgage market.
  
  
• University of Michigan Consumer Sentiment Index - was reported at, less than the 74.0 reading that was expected; however, the reading is up from 72.5 reading in November. Consumer confidence is down due as unemployment remains close to its 26-year high. Unemployment is expected to remain at an average of 10% this year. This report usually has little to no impact on the mortgage market.
    

In other news, a rise in manufacturing and a stable consumer price inflation helped the US dollar rise against the euro currency this morning while the struggling Greek economy weighed heavily on the euro. That is helping the bond and mortgage markets this morning and helping to lower mortgage interest rates.

The markets will be closed on Monday in observance of Martin Luther King Day.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage interest rates are still at historic lows. There's not much potential for MBS prices to tick higher (lower mortgage rates) as the Fed begins winding down their stimulus programs soon as it appears the overall economy is improving. There's also the fear of inflation.

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. It's better to have locked when you should have floated than it is to float when you should have locked.

Mortgage rates are currently improving. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional and rates can change for the worse - often without notice.

Get current mortgage interest rates for your situation in Harwich, MA.