Fairhaven, MA

Mortgage Rate Forecast for September 15, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 102.69 this morning - down 2/32 from yesterday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 102.75 - up 2/32 from its opening.

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 the same in price this morning as compared to yesterday afternoon.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 8-16-2010 to 9-15-2010:

Economic Reports, News, and Events Affecting Mortgage Rates Today:

• Industrial Production Report - as expected, production slowed to a 0.2% increase in August. This follows a revised 0.6% increase in July. The rate of increase was slowed by auto manufacturing which is down 5.0%. When autos are excluded, manufacturing is up 0.5%. Manufacturing continues to help the economic recovery along at a rather slow pace. This report had no impact on the mortgage market this morning.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 10 years:

Mortgage Rate Forecast:

Mortgage rates are coming off their historic lows as the overall economic outlook is beginning to improve. Given the most recent economic and job reports, it now appears that mortgage rates are as low as they will ever go.

If you're thinking about refinancing your mortgage and if these low mortgage rates make sense to you, then take advantage of them while you can. If you're happy with the mortgage 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.

Are you in need of a mortgage to purchase a home? Or want to refinance an existing mortgage into a lower permanent fixed rate? Or want to take cash out of the equity of your home? Or consolidate debt and reduce the monthly bills? Then be sure to request a mortgage rate quote today!

The Trend in Home Sales in Fairhaven MA - Improving, or...?

Home prices in Fairhaven on average are rising! Home prices are up 14.3% since July of 2009.

The current average listing price of homes for sale in Fairhaven MA is $327,666, down 1.3% from a month ago. Compare this to the current median sales price of $227,000 - where half of sales are above this amount and half below it.

3 bedroom homes are selling for less than they were while 2 and 4 bedroom homes are selling for more. Prices of 3 bedroom homes are down 12.9% from year ago levels while prices of 2 bedroom homes are up 59.7 and 4 bedroom homes are up 7.2%. Below is a chart of the trend of median prices of homes for sale in Fairhaven MA over the past 5 years through July 2010:

Fairhaven Recently Sold Homes

While prices of homes in Fairhaven are up, the number of sales for all homes is down 9.6% from year ago levels:

Fairhaven Recently Sold Homes

So what does all this mean? Well, if you're looking for a home in Fairhaven, you can probably find a bargain in 3 bedroom homes as prices are down. Still, lowball offers won't cut it in a market like this.

But if you're looking for a 2 or 4 bedroom home, you better not mess around too much. While sales overall are falling, prices of these homes are climbing. Still, sellers aren't in control of the market either, so both buyers & sellers should be reasonable when negotiating.

You can still buy a home with no money down with a VA Loan. With the FHA Mortgage program, you can purchase a home with as little as 3.5% down. With a MassHousing loan, you can purchase a home with as little as 3.0% down. When you're ready to buy a home, find out how much house you can afford to buy in Fairhaven or in the surrounding area.

Be sure to contact me, Lew Corcoran, toll free at 1-800-941-5616, when you're looking to get pre-approved for a purchase of your next home in Fairhaven or in the surrounding area. Otherwise you may end up frustrated, disappointed and, unfortunately, perhaps misled.

Trend in Home Sales in Fairhaven MA Through April 2010

According to Trulia.com, sales prices of homes in Fairhaven have increased 7.6% over the past year through April 2010, but have depreciated 42.9% over the past 5 years. The current average listing price of homes for sale in Fairhaven MA is $320,786, while the current median sales price is $204,500.

The median sales price is the price at which one half of the homes sold above that amount, and one half of the homes sold below that amount. Below is a chart of the trend of median prices of homes for sale in Fairhaven MA over the past 5 years

Fairhaven Recently Sold Homes

Below is a chart of the trend in home sales in Fairhaven MA over the past 5 years through April 2010:

Fairhaven Recently Sold Homes

If you're looking to buy a home or condo in Fairhaven MA or in the surrounding area, then search the MLS.

Mortgage Rate Forecast for June 4, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.06 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 102.53 - up 15/32 from its opening

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 0.50 points better in price this morning as compared to yesterday.

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 5-5-2010 to 6-4-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Employment Situation Report - according to the Bureau of Labor Statistics, non-farm payroll increased by 430,000 in May, but only 41,000 of those new jobs were in the private industry. This is much less than the 540,000 gain that was expected, and follows a gain of 290,000 jobs in April, and a gain of 208,000 jobs in March. The unemployment rate decreased to 9.7%. The labor market is showing notable improvement, and could help consumers regain optimism which in turn will strengthen the overall recovery. This data had a positive impact on the mortgage market this morning as prices of mortgage backed securities rose on the news. This lead to lower mortgage rates this morning.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Mortgage Rate Lock Advice:

Mortgage rates are no longer at their lows of 2010. Yesterday, the price of the FNMA 30-Year 4.5% Coupon closed within 60 basis points of its all-time high of 102.69 which was on November 30, 2009. This morning, the MBS coupon was within 16 basis points of that all-time high. As a comparison, what that means is this: if a 30 year fixed mortgage rate was 4.750% with no points yesterday, and if price of the MBS 4.5% coupon were to go as high as 102.69, then the best the 30 year fixed mortgage rate would be is 4.625% with 0.875 point today.

Mortgage rates were already at their lows for 2010. While it's still possible that mortgage rates could go lower again with the ongoing economic crisis in Europe as well as the housing market crisis in China, it won't be by much, and I would not risk the chance waiting for it.

If I was closing within the next 5 - 7 days, I would lock in the rate.

If you are closing in more than 7 days, send me an email to get my rate lock advice.

Be sure to check out today's mortgage rates.

Mortgage Rate Forecast for June 2, 2010

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 102.12 this morning - the same as yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 102.12 - the same as its opening.

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 about the same in price this morning as compared to yesterday afternoon.

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 5-3-2010 to 6-2-2010:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• Pending Home Sales Index Report - revealed that pending home sales were up 6.0% in April, and follows a revised 7.1% increase in March. Pending home sales is up 22.4% from a year ago. Released by the National Association of Realtors, the pending home sales index is a leading indicator of existing home sales, not new home sales. A pending sale is one in which a contract to purchase a home was signed, but has not yet made settlement. This report had no impact on the mortgage market or mortgage rates this morning.

In other news, yesterday afternoon the Justice Dept. launched both a civil and criminal probe into BP that sent oil stocks diving for cover. BP was especially hit hard as their stock fell 40%. In addition, the euro continues to fall against the US dollar. Both of these events caused the stock markets to fall late yesterday afternoon and helped bolster mortgage rates.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past year:

Mortgage Rate Lock Advice:

Mortgage rates are no longer at their lows of 2010. On yesterday, the price of the FNMA 30-Year 4.5% Coupon closed within 57 basis points of its all-time high of 102.69 which was on November 30, 2009. This morning, the MBS coupon was within 57 basis points of that all-time high. As a comparison, what that means is this: if a 30 year fixed mortgage rate was 4.875% with no points yesterday, and if price of the MBS 4.5% coupon were to go as high as 102.69, then the best the 30 year fixed mortgage rate would be is 4.75% with 0.50 point today.

Mortgage rates were already at their lows for 2010. While it's still possible that mortgage rates could go lower again with the ongoing economic crisis in Europe as well as the housing market crisis in China, it won't be by much, and I would not risk the chance waiting for it.

If I was closing within the next 5 - 7 days, I would lock in the rate.

If you are closing in more than 7 days, send me an email to get my rate lock advice.

Be sure to check out today's mortgage rates.