TODAY’S MORTGAGE RATE SUMMARY
HOW RATES MOVE:
Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market. This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events. When MBS pricing goes up, mortgage rates or pricing generally goes down. When they fall, mortgage pricing goes up.
RATES CURRENTLY TRENDING: NEUTRAL
Mortgage rates are moving sideways so far today on moderate volatility. The MBS market worsened by -14 bps yesterday. This was enough to worsen rates or fees. The rates experienced high volatility yesterday.
TODAY’S RATE FORECAST: NEUTRAL
Jobs: Initial Weekly Jobless Claims dropped to 209K vs. est of 214K. The more closely watched 4-week moving average continues to be very low at 212,250.
Wholesale Sales: The sales data showed a MOM contraction of -0.3% vs. est of +0.2%. Inventories were flat at 0.0% vs est of +0.2%.
Treasury Auction: Today, we have our 30 year Treasury bond auction at 1:00.
China: Trade Balance with the U.S. $45.06B vs. est of $40B. China imports slowed to 0.4% vs. est of 1.7%, but Exports surged 10.3% vs. est of 2.9%.
TODAY’S POTENTIAL RATE VOLATILITY: HIGH
Mortgage rates have ticked higher on a good deal of volatility after recently plunging lower. Look for rates to move sideways today on moderate volatility. However, markets have been very unpredictable lately, and indeed anything on the trade front could cause rates to move quickly on high volatility.
BOTTOM LINE:
If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.
For the best solution for your real estate financing needs, contact Sheila Siegel at Synergy Financial Group today.
Source: TBWS
