Mortgage Rate Forecast for Truro MA for March 15, 2010
Here are some of the events affecting mortgage rates today in Truro, MA:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.81 this morning - the same as Friday's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 100.81 - the same as 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 2-13-2010 to 3-15-2010:
Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be the same in price this morning as compared to Friday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:
- Industrial Production Report - there was a 0.1% increase in production in February, slightly better than expected, but much worse than the 0.9% increase in January and 0.7% increase in December. The increase in February was due mainly to higher utilities output because of weather conditions. On average, manufacturing is improving. While this report has no impact on mortgage rates this morning, a continuing upward trend in manufacturing could lead to higher interest rates soon.
In other news, the National Association of Home Builders (NAHB) will post their housing index report this afternoon. While not overly important, the report does provide insight into economic momentum and the demand for housing.
Watch this video from MarketWatch to see what will impact the financial markets this week:
What's Happening With Mortgage Interest Rates Today:
Low to Moderate Volatility. Mortgage rates are off their historic lows. However, for the most part, they are holding fairly steady right now. It appears that the overall economy is improving. As such, there's very little potential for lower mortgage rates.
In addition, the Fed is winding down their purchases of mortgage backed securities which is slated to end on March 31st. When that happens, pundits are expecting mortgage rates to get worse by 0.25% - 0.75% in rate. This means that a 30 year fixed rate today of 5.0% with no points could soon be between 5.25% and 5.75%. For a $200,000 mortgage, every 1/4 point increase in rate means an increase of $30 in monthly payment.
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 today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. 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 Truro, MA.