Wareham, MA

Mortgage Rate Forecast for August 9, 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 102.78 this morning - the same as Friday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 102.72 - down 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 about the same in price this morning as compared to Friday.

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 7-10-2010 to 8-9-2010:

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

• There are no economic reports scheduled for release today.

In other news, the Treasury Dept will be auctioning $38 billion in 2-Year notes, $37 billion in 5-Year notes, and $29 billion in 7-Year Notes for a total of $78 billion this week. The Notes and Bonds are used to finance the massive government debt. The results of these auctions could affect mortgage rates next week.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Forecast:

Mortgage rates are at their historic lows. They haven't been this low since the early 1950s - and continue to go lower as the economic recovery slows. These low mortgage rates may be with us for some time. Usually, mortgage rates go up during the summer months during the peak home buying season, then go down as the fall and winter seasons approach. But these are not "normal times." It's possible that mortgage rates will continue to slowly fall. However, they could turn at any time - and will if future economic news shows that we're finally coming out of the recession.

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 Wareham MA - Improving, or...?

Home prices in Wareham on average are falling! Home prices have fallen 19.0% since June of 2009.

The current average listing price of homes for sale in Wareham MA is $413,771, up 1.2% from a month ago. Compare this to the current median sales price of $165,600 - where half of sales are above this amount and half below it.

Prices of 2, 3 and 4 bedroom homes are all down. Prices of 2 bedroom homes are down 22.1% while prices of 3 bedroom homes are down 25.3% and 4 bedroom homes are down 26.0% from year ago levels. Below is a chart of the trend of median prices of homes for sale in Wareham MA over the past year through June 2010:

Wareham Recently Sold Homes

While cyclical, the number of sales for 2 and 3 bedroom homes have been relatively flat over the past several years, but have been increasing over the past couple of months:

Wareham Recently Sold Homes

So what does all this mean? Well, if you're looking for a home in the town of Wareham, you better not mess around too much. Overall, sales are relatively flat, and prices of homes have fallen in the past year. While sellers still aren't in control of this market, buyers should still be reasonable in their offers when negotiating.

You can still buy a home with no money down in Wareham with a VA Loan or with a USDA Rural Development Home Loan. With a MassHousing loan, you can purchase a home with as little as 3.0% down. And, with the FHA Mortgage program, you can purchase a home with as little as 3.5% down.

Be sure to contact me, Lew Corcoran, toll free at 1-800-984-3341, when you're looking to get pre-approved for a purchase of your next home in Wareham or in the surrounding area. Otherwise you may end up frustrated, disappointed and, unfortunately, perhaps misled.

Mortgage Rate Forecast for May 18, 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 101.53 this morning - the same as Yesterday's close.
  
  
• At 9:30 AM, the 4.5% MBS coupon was trading at 101.62 - up 3/32 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 about the same 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 4-18-2010 to 5-18-2010:

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

• Producer Price Index (PPI) - fell 0.1% in April, and is a reversal from the 0.7% rise in March. This means that prices paid at the producer level fell, and is keeping inflation in check. The decrease in the PPI was attributed mostly to a decrease in food and energy costs. At the core level, the PPI rose 0.2%. The core level excludes the more volatile food and energy prices. Falling prices decreases the fear of inflation and tends to have a positive impact on the mortgage market. While significant, this report had no impact on mortgage rates this morning.
  
  
• Housing Starts - was up 5.8% in April to an annualized rate of 672,000 units, better than expected. Housing starts rose 5.0% in March after falling 5.9% in February. This suggests that the overall housing sector is beginning to improve. However, permits for new constructions fell 11.5% in April following a 5.4% increase in March. Usually, this report has little to no impact on the mortgage market or mortgage rates.

In other news, the stock markets in Asia and Europe have ended their sell-offs and are now improving. This signals a growing confidence the $960 billion European bailout package for Greece will work.

Trend in Mortgage Rates:

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

Be sure to check out today's mortgage rates.

Not sure whether you should lock in your mortgage rate today, or continue floating? Then get today's mortgage rate lock advice sent to you instantly by e-mail.

Trend in Home Sales in Wareham MA Through April 2010

According to Trulia.com, sales prices of homes in Wareham have declined 10.6% over the past year through April 2010, and have declined 28.9% over the past 5 years. The current average listing price of homes for sale in Wareham MA is $421,263, while the current median sales price is $170,000.

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 Wareham MA over the past 5 years through April 2010:

Wareham Recently Sold Homes

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

Wareham Recently Sold Homes

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