Mortgage Rate Forecast for Provincetown MA for April 8, 2010
Here are some of the events affecting mortgage rates today in Provincetown, MA:
What Mortgage Backed Securities Are Doing Today:
- The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.06 this morning - the same as Friday's close.
- At 9:30 AM, the 4.5% MBS coupon was trading at 100.12 - up 2/32 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 3-9-2010 to 4-8-2010:
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 up to 0.125 points better in price this morning as compared to yesterday.
Economic Reports, News, and Events Affecting Mortgage Interest Rates in Provincetown, MA Today:
- Jobless Claims - 460,000 new claims for unemployment were filed last week. This is 23,000 more than expected, and 21,000 more than the previous week. The four-week average for unemployment is up by 2,250 to 450,250, while continuing claims for the week of March 27 fell by 131,000 to 4.550 million. The four-week average for continuing claims stands at 4.648 million, down 36,000 from the previous week. 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 effect on mortgage rates this morning.
The Treasury Dept will be auctioning $13 billion in 30-Year Bonds today, and will post the results at 1:00 PM ET. Treasury auctioned notes and bonds were not as well bid two weeks ago as they had been over the past year. The less than expected demand in notes and bonds is one of the reasons behind the recent increase in mortgage rates. If this auction is met with a lackluster interest from buyers, particularly international investors, that 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 rates this afternoon.
What's Happening With Mortgage Interest Rates in Provincetown, MA Today:
Moderate to High Volatility. Mortgage rates are off their historic lows, and while they rose significantly last week, they have since come back down a bit. But this may be temporary.
The overall economy is improving without any increase in jobs. The Fed has also ended their purchases of mortgage backed securities. In addition, the federal deficit continues to grow while demand for US debt is waning. We're also entering the prime home selling and buying season. Historically, mortgage rates rise and fall with the thermometer. Usually from this time of the year and into the summer months, as the weather warms, mortgage rates rise.
As such, there's little or no potential for lower mortgage rates anytime soon. 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.
If I were applying for a mortgage today, I would float for now. However, I would proceed with caution and maintain contact with my mortgage professional. I would be ready to lock in at a moment's notice as mortgage rates can continue to change for the worse.
Get current mortgage rates for Provincetown, MA.