Published Date 8/30/2022
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 lightly higher today. The MBS market worsened by -22 bps yesterday. This might have been enough to increase mortgage rates or fees. The market experienced moderate volatility yesterday.
TODAY’S RATE FORECAST: NEUTRAL
Domestic News:
Housing: June FHFA Housing Price Index was flat on a MOM basis, hitting just 0.1% vs. est. of 1.1%. The YOY Case Shiller Home Price Index dropped to 18.6% from May’s pace of 20.5%.
Jobs: The July Job Openings and Turnover Survey (JOLTS) showed unfilled jobs at 11.239M vs. est. of 10.475M.
Consumer Confidence: The August reading was a big beat…breaking back above 100 with a 103.20 reading and it far outpaced estimates of 97.4
The Fed: We hear from N.Y. Fed Pres Williams (voting member) and Richmond Fed Pres Barkin (non voting member) today.
Overseas news:
Germany: Europe’s Juggernaut saw inflation rise YOY 8.8% in Harmonized CPI
TODAY’S POTENTIAL RATE VOLATILITY: NEUTRAL
This morning markets are under some pressure. Volatility is at moderate levels with some geopolitical events pushing a slight flight 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
