The Mortgage Interest Rate Lock Advisory for Brewster MA for January 19, 2010

The Mortgage Interest Rate Lock Advisory for Brewster MA for January 19, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.53 this morning - down 7/32 from Friday's close.
  
  
• At 10:15 am, the 4.5% MBS coupon was trading at 100.63 - up 3/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. I expect that mortgage interest rates will be 0.125% - 0.375% worse in price this morning as compared to Friday.

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 12-19-2009 to 1-18-2010:

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

• there are no economic reports scheduled for release today.

In other news, a special election is being held today in Massachusetts to fill the seat long held by Senator Edward Kennedy. While Democrats outnumber Republicans by 3 to 1 in the state, Independents outnumber both. If Republican state senator Scott Brown wins the election against the Democrat nominee Massachusetts Attorney General Martha Coakley, health care stocks and the stock markets could soar tomorrow. That in turn could lead to higher mortgage interest rates tomorrow as investors pull funds out of the safe haven of the bond and mortgage markets and invest in stocks.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. 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.

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