Scarborough, ME

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.

It is now 2008 and buyers are realizing that it is now or never....prices have come down and interest rates are still doing well...Many buyers are hoping to come into the Maine market and get a lot for their money....but the truth is that many sellers have already marked prices as low as they possibly can....Sellers today are having to go to closing with some cash in order to clear title...

Buyers may want to understand the market that they are shopping in first of all.....for example Biddeford is a little different from Ogunquit....and the prices will dictate that....

It is nice to see buyers doing their homework over the internet before seeking to see a property, but keep in mind that many properties out there are in an up side down loan and sellers can decrease their prices just so far....

It is important for agents to educate their buyers, for example, a seller has a large mortgage on a property...it is important to know this before trying to just make a low ball offer....in todays market many sellers are either just breaking even or needing to come to the closing with cash.


ZIP Code: 04074

Location Characteristics: Scarborough is a town in Cumberland County, settled in 1630 and incorporated on July 14, 1658 from the towns of Black Point and Blue Point, and nearby islands.

It is the birthplace of Maine's first governor and advocate for statehood, William King.

Winslow Homer lived and painted in Prout's Neck, a somewhat isolated peninsula that now is home to a bird sanctuary donated by the artist's brother, Charles. Homer's work is often featured at the Portland Museum of Art.

The town's fine beaches and the Scarborough Downs race track and off-track betting facility are attractions for many.

Scarborough Marsh, operated by the Maine Audubon Society, offers guided canoe trips, canoe rentals, bird walks and a museum and visitor center at Maine's largest salt marsh. The nearby Scarborough River provides recreational boating opportunities and open space.

A suburb of Portland, the rapidly growing community now ranks as tenth most populous in Maine according to the 2000 U.S. Census, up from 13th place in 1990, having grown almost 36 percent in ten years.

Scarborough is conveniently located in southern Maine, approximately 7 miles south of the City of Portland. It is just a short drive to Portland and the Maine Mall with easy access to the Maine Turnpike, Portland Jetport and now passenger rail service to Boston and points south. Scarborough is a diverse community with a commitment to the quality of life and the environment.

Scarborough offers lovely sandy beaches and the rocky coastline made famous by a local artist, Winslow Homer. The largest saltwater marsh in Maine is located within our boundaries along with Rachel Carson Wildlife lands.

We are a suburban community that offers open spaces, parks and recreational areas for our residents and visitors. We also have a balance with our commercial businesses. The newest area for businesses to locate in Scarborough is along the Haigis Parkway, located right at Exit 6 of the Maine Turnpike.

County: Cumberland ~ School Dist/Dept: Scarborough School Department ~ Senate District: 6 , 7 ~ House District: 127 , 128 ~ Congressional District: 1
Population: 16970 ~ Area: 54.0 sq miles
Pop. Density: 356/sq mile ~ Longitude: W 70:21:40
Latitude: N 43:34:54

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