The Mortgage Interest Rate Lock Advisory for Springfield MA for October 9, 2009

The Mortgage Interest Rate Lock Advisory for Springfield MA for October 9, 2009

Here are some of the events affecting mortgage interest rates today in Springfield, Massachusetts.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.69 this morning - down 5/32 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 - down 17/32 from it's opening (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. I expect that mortgage interest rates will be 0.25% - 0.50% worse in price this morning as compared to yesterday.

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

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

• Goods and Services Trade Balance Report for August - the report revealed a $30.7 billion trade deficit in August, and is down from the $32.0 billion deficit the previous month. The decline was due mostly to lower imports of oil and consumer goods, and indicates that the economy is still sluggish. While this report gives us the size of the U.S. trade deficit, it had little or no impact on the mortgage market.

The 30-year Bond auction yesterday did not go as well as 10-year auction on Wednesday. This led to a selling in mortgage backed securities yesterday afternoon that carried over to this morning.

There are a couple of important economic reports scheduled for release next week as well as the release of the minutes from the last FOMC meeting. The bond market will be closed on Monday in observance of the Columbus Day holiday, but the stock markets will be open for trading.

What's Happening With Mortgage Interest Rates Today:

Moderate volatility. Overall, expect the mortgage market to be heavily influenced mostly by the stock markets today. Expect mortgage interest rates to rise following the lackluster sale of the 30-year Bond yesterday.

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
• Lock 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.

For the best mortgage interest rates in Springfield, MA, click here.