Mortgage Rate Forecast for Wareham MA for March 18, 2010
Here are some of the events affecting mortgage rates today in Wareham, MA:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.16 this morning - the same as yesterday's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 101.16 - 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 2-16-2010 to 3-18-2010:
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 yesterday.
- Consumer Price Index (CPI) - the overall index was flat in February - it was expected to rise 0.1% - and follows a 0.2% rise in January. The core data, which excludes the more volatile food and energy prices, rose 0.1% as expected. This is one of the most important monthly reports that we see as it measures inflationary pressures at the consumer level of the economy. This report shows that inflation is being held in check - at least for now. This report had no impact on the mortgage market or mortgage rates this morning.
- Jobless Claims - 457,000 new claims for unemployment were filed last week. This is 2,000 more than expected, but 5,000 less than the previous week. The four-week average for unemployment fell by 4,250 to 471,250, while continuing claims rose by 12,000 to 4.575 million. All signs indicate the economy has been recovering of late - but without an increase in jobs. This data is usually not considered to be very important to the mortgage market, and had no impact on the mortgage market or mortgage rates this morning.
- Leading Economic Indicators (LEI) - revealed a 0.1% increase, slightly less than expected. This Conference Board report attempts to predict economic activity over the next three to six months. This indicates there's a general weakness in the economy and that economic activity is not likely to rise much in the near future. This report had no impact on the mortgage market or mortgage rates this morning.
For more insight into today’s economic reports, watch this video from CNBC:
In other news, the Treasury Dept will announce later this morning Treasury announces the terms of the Notes and Bond auctions scheduled for next week. The Notes and Bonds are used to finance the massive government debt, and the results of these auctions could result in higher mortgage rates next week.
What's Happening With Mortgage Interest Rates Today:
Moderate to High Volatility. Mortgage rates are off their historic lows. However, for the most part, they are still low and 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 6.00%. 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 Wareham, MA.