Published Date 7/14/2022
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: HIGHER
Mortgage rates are moving higher today. The MBS market worsened by -25 bps yesterday. This was enough to increase mortgage rates or fees. The market experienced high volatility yesterday.
TODAY’S RATE FORECAST: HIGHER
Inflation: The June Producer Price Index (PPI) increased another 1.1% vs. est. of 0.9% on a MOM basis, plus the prior month was revised upward to 0.9%. This is the 27th straight month of MoM increases in producer prices YOY, it increased by 11.3% vs. est. of 10.7%. Core PPI (ex food and energy) rose by 0.4% vs. est. of 0.5%. YOY, it increased by 8.2% vs. est. of 8.1%, May was revised upward from 8.3% to 8.5%!
Jobs: Initial Weekly Jobless Claims were higher than expected (244K vs. est. 235K). The more closely watched 4 week moving average increased to 235,750. Continuing Claims dropped to 1.331M and were also lighter than expected (1.383M).
TODAY’S POTENTIAL RATE VOLATILITY: HIGH
This morning markets are still under pressure by inflationary data. Volatility remains high.
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
