Hanson, MA

Mortgage Rate Forecast for August 30, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 102.72 this morning - the same as Friday's close.
  
  
• At 9:30 AM, the 4.0% MBS coupon was trading at 102.78 - up 2/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be about the same in price this morning as compared to late Friday afternoon.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 7-31-2010 to 8-30-2010:

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

• Personal Income and Outlays Report - there was a 0.2% gain in personal in July, slightly less than expected, and follows no change in June. Year-over-year, personal income is up 3.0%. Consumer spending was also unchanged in July - up 0.4%.
  
  This report provides us with a measurement of the consumer's ability to spend and their current spending habits. Because consumer spending makes up two-thirds of the U.S. economy, any related data usually has an impact on the mortgage market and mortgage rates. This report shows that the consumer sector is making a comeback and should help improve the now anemic economic growth. It also shows that inflation is not yet a factor. This report had no impact on the mortgage market or mortgage rates this morning.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 3 years:

Mortgage Rate Forecast:

Mortgage rates are at their historic lows. They haven't been this low since the early 1950s. These low mortgage rates may be with us for some time - or they may not. Usually, mortgage rates go up during the summer months during the peak home buying season, then go down as the fall and winter seasons approach. But these are not "normal times." It's possible that mortgage rates will continue to slowly fall. However, as the last few weeks have shown, they could turn at any time.

If you're thinking about refinancing your mortgage and if these low mortgage rates make sense to you, then take advantage of them while you can. If you're happy with the mortgage rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. It's better to have locked when you should have floated than it is to float when you should have locked.

Are you in need of a mortgage to purchase a home? Or want to refinance an existing mortgage into a lower permanent fixed rate? Or want to take cash out of the equity of your home? Or consolidate debt and reduce the monthly bills? Then be sure to request a mortgage rate quote today!

The Trend in Home Sales in Hanson MA - Improving, or...?

Home prices in Hanson on average are falling! Home prices have fallen 5.0% since July of 2009.

The current average listing price of homes for sale in Hanson MA is $315,441, down 3.8% from a month ago. Compare this to the current median sales price of $266,041 - where half of sales are above this amount and half below it.

Below is a chart of the trend of median prices of homes for sale in Hanson MA over the past 5 years through July 2010:

Hanson Recently Sold Homes

Although cyclical, the number of sales for all homes have been increasing over the past year:

Hanson Recently Sold Homes

So what does all this mean? Well, if you're looking for a home in Hanson, you can probably find a bargain. Still, lowball offers won't cut it in a market like this. Sellers aren't in control of the market either, so both buyers & sellers should be reasonable when negotiating.

You can still buy a home with no money down with a VA Loan or with a USDA Rural Development Home Loan. With the FHA Mortgage program, you can purchase a home with as little as 3.5% down. With a MassHousing loan, you can purchase a home with as little as 3.0% down. When you're ready to buy a home, find out how much house you can afford to buy in Hanson or in the surrounding area.

Be sure to contact me, Lew Corcoran, toll free at 1-800-941-5616, when you're looking to get pre-approved for a purchase of your next home in Hanson or in the surrounding area. Otherwise you may end up frustrated, disappointed and, unfortunately, perhaps misled.