Real estate agents, mortgage originators and home buyer’s are in a frenzy across the nation worried that thousands of settlements might not be completed Wednesday due to the June 30 deadline. They are hopeful that the tax credit extension will be approved to give buyers more time to sign a contract.If approved by the Senate and signed into law by President Obama, home buyer’s will have extra time to get the popular federal tax credit.
On Tuesday, the House voted 409-5 a measure that would extend the deadline to September 30 for buyers to sign a contract who already met the April 30 deadline.
Right now, the current deadline is today, June 30. Unless the tax credit extension is approved today, buyers must close the transaction today to receive the $8,000 tax credit for first-time homebuyers.
With the recent extension of unemployment benefits, I would assume this may pass shortly. But who knows.
Maine Mortgage Rate Forecast for June 30, 2010
Here are some of the events affecting mortgage rates in Maine today:
What Mortgage Backed Securities (MBS) Are Doing Today:
- The price of the FNMA 30-Year 4.0% MBS coupon opened at 101.50 this morning – the same as yesterday’s close.
- At 9:30 AM, the 4.0% MBS coupon was trading at 101.31 – down 6/32 from its opening.
Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up – and so do mortgage rates. I expect that Maine mortgage rates will be up to 0.250 points worse in price this morning as compared to yesterday.