About Cumberland County, ME

For the month ending October 2009 the Cape Elizabeth Maine real estate markets saw 13 transactions transpire at a median sales price of 426. Contrasting sharply in volume compared with October 2008 when only 4 properties traded hands. The median sales price was flat compared to a year ago and and month over month was up 42% as larger more expensive properties sold.

For more information on homes for sale in southern Maine please visit www.mymaineproperty.com or feel free to contact me directly at 207-650-5383 or via email at john@greentreemaine.com

The real estate markets of South Portland saw 29 transactions take place in October 2009 compared with 25 a year prior. Median pricing clocked in at 196K compared with 173K in October 2008. Pricing year over year was actually up 13% compared with its larger neighbor Portland whom saw a 9% decrease in median prices for the same period. The residential markets continue to see healthy activity given the overall economic conditions. Inventory currently hovers around 150 residential units.

For more information on southern Maine property please visit www.mymaineproperty.com or feel free to contact me directly at 207-650-5383 or via email at john@greentreemaine.com

For the month ending October 31st, 2009, Happy Halloween :), the city of Portland saw 49 residential real estate transactions take place at a median price point of 200K, down 9% in pricing from October 2008, but representing a volume increase of 25%, perhaps due largely to the Maine first time homebuyer purchasing prior to the possible expiration of the federal housing tax credit. The current inventory of homes as of today was 432, down marginally from last mont.

For more info on Portland Maine property for sale, please visit www.mymaineproperty.com.

Thanks for reading,

John Herrigel
Maine Buyers Agent

Brunswick Maine residential real estate saw 19 transactions take place in September 2009 compared with 20 a year prior. Median pricing clocked in at 166K compared with 240K in September 2008. The residential markets continue to see healthy activity given the overall economic conditions. Inventory sits at just round 200 homes on the market.

For more information on southern Maine property please visit www.mymaineproperty.com or feel free to contact me directly at 207-650-5383 or via email at john@greentreemaine.com

The Mortgage Interest Rate Lock Advisory for Scarborough ME for October 29, 2009

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

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.09 this morning - down 1/32 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 100.97 - down 5/32 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.

Recent Activity in Mortgage Backed Securities:

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:

• Preliminary Reading of the 3rd Quarter Gross Domestic Product (GDP) - there was a 3.5% increase in the 3rd Quarter GDP - more than expected. Analysts expected a 3.0% increase in the GDP. This is the first expansion in the economy in more than a year, but it was fueled mostly by the "Cash for Clunkers" program and the first-time homebuyers tax credit. The GDP is considered to be the benchmark measurement of economic growth because it is the sum of all goods and services produced in the U.S. The report had a major impact on the financial and mortgage markets this morning. The price of the FNMA 4.5% coupon fell sharply by 29/32 to 100.24 this morning, but quickly recovered to 101.00.
  
  
• Jobless Claims -530,000 new claims for unemployment were filed last week, 5,000 more than expected, and only 1,000 less than the new claims filed the previous week. The 4-week average fell for the 8th straight week to 526,250, the lowest since January of this year. Meanwhile, continuing claims for unemployment dropped sharply by 148,000 to 5.8 million. The overall decreasing trend in the filing of new claims for unemployment suggests that companies are laying off fewer workers. However, the large number of people who are still unemployed suggests people are having a hard time finding new jobs. This data is usually not considered to be very important to the mortgage market.
  
  
• Fed's MBS Purchase Program - The results of this week's purchases of mortgage backed securities by the Feds will be released in the afternoon. As of last Thursday, the Feds have purchased over $959 billion in mortgage backed securities this year. The Feds plan on purchasing up to $1.25 trillion in mortgage backed securities through March 31st.

In other news, $31 billion in 7-Year Notes are scheduled for auction today. If the auction is met with a strong demand, prices of mortgage backed securities may rise during afternoon trading which may in turn lead to lower mortgage interest rates. But a lackluster demand may cause investors to sell mortgage backed securities which in turn may lead to higher mortgage interest rates. There was a high demand in the auction of $41 billion in 5-Year Notes yesterday.

What's Happening With Mortgage Interest Rates Today:

Moderate to high volatility. Overall, it will be an active - and volatile - week for the mortgage market and mortgage interest rates. The most volatile day of the week will be today with the release of the preliminary 3rd Quarter GDP (as this morning already demonstrated), and the results of the 7-Year Note auction early this afternoon.

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.

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