Published Date 8/11/2022
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 sideways today. The MBS market improved by +23 bps yesterday. This might have been enough to decrease mortgage rates or fees. The market experienced high volatility yesterday.
TODAY’S RATE FORECAST: NEUTRAL
Jobs: Initial Weekly Jobless Claims were inline with expectations (262K vs. est. 263K). The more closely watched 4 week moving average moved higher to 252K. Continuing Claims were 1.428M vs. est. of 1.407M.
Inflation: Headline July Producer Price Index (PPI) increased by 9.8% on a YOY basis but that was lower than forecasts of 10.4%. On a MOM basis, it actually contracted by -0.5% thanks to a big decline in energy prices, estimates were for 0.2% Core PPI (ex food and energy) increased by 7.6% on a YOY basis which matched forecasts and was up 0.2% on a MOM basis which was half of estimates in the 0.4% range.
Treasury Sales: We have an important 30 year bond auction at 1 pm ET today.
TODAY’S POTENTIAL RATE VOLATILITY: LOW
This morning markets are mostly moving sideways. Volatility has started low today.
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
