The Mortgage Interest Rate Lock Advisory for Medford MA for November 9, 2009

The Mortgage Interest Rate Lock Advisory for Medford MA for November 9, 2009

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

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.16 this morning - down 4/32 from Friday'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 101.34 - up 2/32 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. I expect that mortgage interest rates will be the same in price this morning as compared to Friday's close.

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

Recent Activity in Mortgage Backed Securities:

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 $40 billion in 3-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.

What's Happening With Mortgage Interest Rates Today:

Low to Moderate Volatility. Overall, because of the lack of economic reports this week, the Treasury auctions and the stock markets will most likely be the dominant influence on the trading of mortgage backed securities. If the stock markets rally this week, we will probably see funds shift from mortgage backed securities and into stocks. That will drive prices of mortgage backed securities downward and lead to rising mortgage interest rates. If, on the other hand, stocks fall from current levels, that would make mortgage backed securities more attractive to investors and lead to lower mortgage interest rates.

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 the best available mortgage interest rates for your situation in Medford, MA!