The Mortgage Interest Rate Lock Advisory for Auburn ME for October 16, 2009

The Mortgage Interest Rate Lock Advisory for Auburn ME for October 16, 2009

Here are some of the events affecting mortgage interest rates today in Auburn, ME.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.58 this morning - up 3/32 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 100.56 - down 1/32 from its opening. 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 essentially be the same in price today as compared to yesterday.

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

• Industrial Production Data for September - there was a 0.7% increase in industrial production last month. Analysts were expecting am increase of 0.2%. This follows a 0.8% increase in August. This report provides us with an indication of manufacturing strength by tracking orders at U.S. factories, mines and utilities. A larger than expected increase normally would drive mortgage interest rates up, but it appears the data had no impact on the mortgage market this morning.
  
  
• University of Michigan's Index of Consumer Sentiment Preliminary Reading for October - the reading for October came in at 69.4, well below expectations. Analysts anticipated a reading of 74.0, up slightly from the final reading of 73.5 in September. This index measures consumer willingness to spend. This report also appears to have no impact on the mortgage market or mortgage interest rates this morning.

There are a number of quarterly earnings reports scheduled for release this week that could affect the stock markets. If the earnings reports are good or better than expected, then you can expect traders to sell bonds and mortgage backed securities and move those funds into stocks. If, on the other hands, earnings reports are worse than expected, then you can expect traders to sell stocks and move those funds into bonds as a safe-haven.

There are a few economic reports scheduled for release next week, but only one of them is considered to be important. The rest are either of moderate or low importance. Look for more details on next week's events on Monday.

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.

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.

Get today's mortgage interest rates for your situation in Auburn, ME.