The Mortgage Interest Rate Lock Advisory for Harwich MA for February 10, 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 101.09 this morning - the same as yesterday's close.
- At 9:30, the 4.5% MBS coupon was trading at 100.78 - down 10/32 from its opening.
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 1-11-2010 to 2-10-2010:
Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. 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 yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Goods and Services Trade Balance Data for December - the monthly trade deficit rose to $40.2 billion in December, and is worse than expected. Analysts were expecting a $35.7 billion trade deficit. The trade deficit stood at $36.4 billion in November. This report measures the U.S. trade deficit and can affect the value of the U.S. dollar versus other currencies, but it usually does not cause enough movement in mortgage backed securities to affect mortgage interest rates.
In other news, mortgage backed securities are losing ground to the stock market on news that Germany will bail out Greece.
Ben Bernanke, Chairman of the Federal Reserve, will testify before the House Financial Services Committee today on the subject of "Unwinding Emergency Federal Reserve Liquidity Programs."
The Treasure Dept will be auctioning $25 billion in 10-Year Notes and will post results at 1:00 PM ET. The Notes and Bonds are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher during afternoon trading. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling of bonds could result in upward revisions to mortgage interest rates.
What's Happening With Mortgage Interest Rates Today:
Moderate Volatility. Mortgage interest rates are still at historic lows. However, because it appears that the overall economy is improving, and because the Fed continues to auction Treasury Notes to pay for the massive government debt, there's the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. As such, there's not much potential for lower mortgage interest rates.
If you're happy with the rate being offered to you and if you don't want to risk mortgage interest rates moving higher, then 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 interest rates are currently improving slightly. 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.
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