The Mortgage Interest Rate Lock Advisory for Bangor ME for September 29, 2009

The Mortgage Interest Rate Lock Advisory for Bangor ME for September 29, 2009

Here are some of the events affecting mortgage interest rates today in Bangor, Maine.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened down 1/32 at 101.31.

The price of the FNMA 30-Year 4.5% MBS coupon closed up 7/32 yesterday at 101.34 (as shown by the white line). MBS wa down as much as 6/32 this morning, but is currently trading up 1/32 at 101.36 (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 0.125% - 0.25% worse in price this morning as compared to yesterday, but may improve this afternoon.

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

• Consumer Confidence Index (CCI) for September - consumer confidence declined last month as the Conference Board reported a reading of 52.1, up from a 54.1 reading in August. Analysts were expecting a reading of 57.0. The primary reason for the decline is the current job market: More people are saying that jobs are more difficult to get, and 19.8% of those who have jobs are reporting a decline in incomes. This index provides us with a measurement of the willingness of consumers to spend. A decrease in the index indicates that consumers are less optimistic about their own financial situations, and are less likely to make large purchases in the near future. This resulted in lower mortgage interest rates late this morning.

In other news, Case-Schiller today reported that home prices on average rose 1.6% last month. In addition, 18 of the top 20 metro areas have reported home price increases in each of the last three months. The rate of decline has also improved for the third month in a row, and is now down just 13.3% from a year ago, up from a negative 19% in January.

David Blitzer, chairman of the S&P Index Committee, said that "the rate of annual decline in home price values continues to decelerate and we now seem to be witnessing some sustained monthly increases across many of the markets"

According Jennifer Lee of BMO Capital Markets, "... house prices looked to have bottomed, which is the much-needed ingredient required to bake this housing market recovery."

Watch this video from CNBC to learn more:

What's Happening With Mortgage Interest Rates Today:

Low to Moderate Volatility. Overall, look for some volatility in the mortgage market 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
• 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.

For the best mortgage interest rates in Bangor, ME, click here.