The Mortgage Interest Rate Lock Advisory for Hyannis MA for November 10, 2009

The Mortgage Interest Rate Lock Advisory for Hyannis MA for November 10, 2009

Here are some of the events affecting mortgage interest rates today in Hyannis, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.03 this morning - down 14/32 from yesterday's close.

The chart below shows today's price trend of the FNMA 30-Year 4.5% coupon:

The FNMA 30-Year 4.5% MBS coupon is currently trading at 101.28 - up 5/32 from its opening. Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and mortgage interest rates come down with it. Yesterday was "roll-over" day, so I expect that mortgage interest rates will be about the same in price this morning as compared to yesterday.

Recent Activity in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:

Ima

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

• There are no economic reports scheduled for release today.

In other news, the Treasury will auctioning $25 billion in 10-Year Notes today. If the Treasury auctions are met with a strong demand from investors, we should see higher prices for mortgage backed securities and lower mortgage interest rates. However, if we see a lackluster demand, we should see lower prices for mortgage backed securities and higher mortgage interest rates.

Three speakers from the Federal Reserve will today speak about their outlooks on the economy. Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, will speak to the Urban Land Institute conference in Atlanta.

Janet Yellen, president of the Federal Reserve Bank of San Francisco, will speak to the Lambda Alpha International in Phoenix.

Richard Fisher, president of the Federal Reserve Bank of Dallas, will speak to the Austin Headliners Club in Austin.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Overall, the single most important day this week will be Friday with the release of the Employment Situation Report. Activity in the stock markets will continue to be volatile which in will have an impact on trading of mortgage backed securities. If you have not yet locked in your mortgage interest rate, please proceed with caution and maintain contact with your mortgage professional.

My Mortgage Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within the next 7 days
• Float if my closing was taking place between 8 and 30 days
• Float if my closing was taking place between 31 and 45 days
• Float if my closing was taking place between 46 and 60 days

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers.

Get today's mortgage interest rates for your situation in Hyannis, MA.