Published Date 7/28/2022
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: LOWER
Mortgage rates are moving lower today. The MBS market improved by +44 bps yesterday. This was enough to decrease mortgage rates or fees. The market experienced high volatility yesterday.
TODAY’S RATE FORECAST: LOWER
Recession: Its official, our economy has moved into recessionary territory in the second quarter. The 2nd QTR GDP contracted with a reading of -0.9%, on top of the 1st QTRs contraction of -1.6%. The Price Index shot up to 8.9% which far out paced expectations of 7.9%. The closely watched Atlanta Federal Reserve’s GDP tracker got it right… predicting a rate of -1.2% and it came in at -0.93%. This tracker will get a lot of weight in future readings.
Jobs: Initial Weekly Jobless Claims increased by 256K which was a little worse than expectations of 253K. The more closely watched 4 week moving average moved higher to 249,250. Continuing Claims dropped from 1.384M to 1.359M which was the only bright spot in this report.
Treasury Sales: We have an interesting 7 year Treasury note auction today at 1 pm ET, after the Fed’s “no forward guidance” and today’s recession.
TODAY’S POTENTIAL RATE VOLATILITY: HIGH
This morning markets are responding to the recession news. Volatility is high as investors flee to safety.
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
