Falmouth, MA

The Mortgage Interest Rate Lock Advisory for Falmouth MA for February 3, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.03 this morning - the same as yesterday's close.
  
  
• The 4.5% MBS coupon is currently trading at 100.88 - down 3/32 from its opening.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 1-3-2010 to 2-2-2010:

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.

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

• ADP Employment Report for January - employers cut another 22,000 private jobs last month. This is the lowest monthly jobs cut in two years, and follows a revised 61,000 jobs cut in December. This report shows that not as many people are losing their jobs compared to a year ago. This report resulted in slightly higher mortgage interest rates this morning.
  
  
• Institute for Supply Management's (ISM) - is up 7/10ths in January with a reading of 50.5. While a reading above 50 indicates manufacturing sector expansion rather than contraction, this indicates that the economy was relatively flat last month. This report had no impact on mortgage interest rates this morning.

In other news, the Treasury Dept will announce later this morning $81 billion in Note and Bond auctions scheduled for next week. The Notes and Bonds are used to finance the massive government debt, and could result in upward revisions to mortgage interest rates next week.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage interest rates are still at historic lows. There's not much potential for MBS prices to tick higher (lower mortgage rates) as the Fed begins winding down their stimulus programs soon as it appears the overall economy is improving. There's also the fear of inflation.

If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked.

Mortgage interest rates are generally holding at currently levels. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional as mortgage interest rates can change for the worse.

Get current mortgage interest rates for your situation in Falmouth or anywhere else in Massachusetts.

The Mortgage Interest Rate Lock Advisory for Falmouth MA for January 7, 2010

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

What Mortgage Backed Securities Are Doing Today:

• The price of the FNMA 30-Year 4.5% MBS coupon opened at 100.50 this morning - down 3/32 from yesterday's close.
  
  
• The 4.5% MBS coupon is currently trading at 100.45 - down 2/32 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 be 0.125% - 0.25% worse in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days from 12-7-2009 to 1-6-2010:

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

• Jobless Claims - 434,000 new claims for unemployment were filed last week, less than expected. and slightly more than the previous week. Analysts predicted there would be 450,000 new claims. With a decreasing trend in the filing of new claims for unemployment, this suggests that the labor market is improving. However, this data is usually not considered to be very important to the mortgage market.

In other news, the December ADP Employment Report revealed 84,000 private jobs were lost in December. Analysts expected the report to show a loss of 75,000 private jobs. While significant, the report did not have much of an impact on the mortgage market this morning.

Yesterday's release of the minutes of the last FOMC meeting indicates the Fed is not sure we have a solid recovery as they discussed increasing and extending the asset purchase program should the economy weaken. At the same time, they are concerned about the potential for inflation.

"To keep inflation expectations anchored, all participants agreed that monetary policy would need to be responsive to any significant improvement or worsening in the economic outlook and that the Federal Reserve would need to continue to clearly communicate its ability and intent to begin withdrawing monetary policy accommodation at the appropriate time and place," the minutes read.

What's Happening With Mortgage Interest Rates Today:

Moderate to High Volatility. Mortgage interest rates are still at historic lows. There's not much potential for MBS prices to tick higher (lower mortgage rates) as the Fed begins winding down their stimulus programs soon as it appears the overall economy is improving. There's also the fear of inflation.

If you're happy with the rate being offered to you and don't want to risk mortgage interest rates moving higher, you should apply and lock in today. It's better to have locked when you should have floated than it is to float when you should have locked. If you have not yet locked in your mortgage interest rate yet, please proceed with caution and maintain contact with your mortgage professional.

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

Merry Christmas!

To all those who have helped us smile and laugh this year, we are still smiling and laughing with the memories! To those who encouraged us, we appreciate your hope and vision for us! To those who prayed for us, our faith has increased!

Our Christmas wish for you is that you are still laughing and smiling; that you have been encouraged by our hope and vision for you; and that your faith is stronger than ever.

We are reflecting on this year gratefully, and with happiness!

Merry Christmas!

It is a Beautiful Day On Cape Cod! Downtown Falmouth streets have been plowed and there are shops opening as I write. The picture below shows Main Street at 7:30 this morning when I got here to the office. Now at 9 am, the traffic is picking up and shoppers are starting to arrive.

If you are looking for gifts and presents, come down to Falmouth Village and support your local businesses! The Main Street selection of shops is a good as any mall. And the food selection is better than you'll find in any food court!

Well, it is another beautiful day on Cape Cod! It is cold, but the sun is out and the snow is still white. People are out shopping again and most of the streets have been plowed at least once.

This may sound funny to those who live in colder climates where snow is common. However, here on Cape Cod, lots of snow all at once does not happen often. We have enough equipment to clear out small storms, but larger ones take a little time and patience.

The picture below was taken yesterday as the sun rose. I measured 17 inches with a yardstick in my driveway. It took 4 hours to clear it - with a snow blower.

Saturday is supposed to be 50 degrees, so we'll have to enjoy it while it is bright and clean. Stay warm!