Mortgage Rate Forecast for Brewster MA for March 5, 2010
Here are some of the events affecting mortgage 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 101.44 this morning - the same as yesterday's close.
- At 9:30, the 4.5% MBS coupon was trading at 101.19 - down 8/32 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 2-3-2010 to 3-5-2010:
Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage rates. I expect that mortgage rates will be 0.125% - 0.250% worse in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Employment Situation Report - according to the Bureau of Labor Statistics, non-farm payroll fell by 36,000 in February, and is not as bas as expected. Analysts expected a loss of 50,000 jobs. This follows a loss of 20,000 jobs in January, a loss of 150,000 jobs in December, and a gain of 64,000 jobs in November. The unemployment rate remains at 9.7%, slightly less than the 9.8% rate that was expected. The unemployment rate stood at 10.0% in November and December. This data had a negative impact on the mortgage market this morning as prices of mortgage backed securities fell on the news. This lead to higher mortgage rates this morning.
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Mortgage rates are again off their historic lows. It appears that the overall economy is improving. However, the Fed continues to auction Treasury Notes and Bonds to pay for the increasing massive government debt, all of which contributes to the fear of inflation. In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 51st. As such, there's very little potential for lower mortgage rates.
Mortgage rates have improved slightly this past week. However, if you have not yet locked in your mortgage rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage rates can change for the worse - often without notice.
If you're happy with the interest rate being offered to you and if you don't want to risk mortgage 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.
Get current mortgage rates for Brewster, MA.