Published Date 5/19/2022

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 slightly lower today. The MBS market improved by +23 bps yesterday. This may have been enough to decrease mortgage rates or fees. The market experienced high volatility yesterday.

TODAY’S RATE FORECAST: NEUTRAL
Housing: April Existing Home Sales hit 5.61M vs. est. of 5.65M

Jobs: Initial Weekly Jobless Claims were higher than expected (218K vs. est. of 200K). The more closely watched 4 week moving average ticked upward to 199,250. Continuing Claims were close to expectations, 1.317M vs. est. of 1.3200M.

Manufacturing: We had a dismal report out of the Philly Fed. Their May Manufacturing Business Outlook Survey tanked, down to only 2.6 which is the lowest in 2 years. The market was expecting a much higher reading in the 16.0 range.

The Fed: Today we hear from Kashkari and Barr.

TODAY’S POTENTIAL RATE VOLATILITY: NEUTRAL
This morning markets are trending better on the poor economic news. Volatility has been moderate to start with but could spike later in the day.

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.

Source: TBWS

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Not all borrowers qualify for all programs, must meet underwriting guidelines and are subject to credit review and approval. This does not constitute a commitment to lend. JC Financial Solutions, Inc is an Equal Housing Lender. NMLS 365033, CABRE 01445232