Published Date 9/1/2022
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 -31 bps yesterday. This was enough to increase mortgage rates or fees. The market experienced high volatility yesterday.
TODAY’S RATE FORECAST: HIGHER
Domestic News:
Jobs: August Challenger Job Cuts dropped from 25.81K to 20.49K. Initial Weekly Jobless Claims were lighter/better than expected (232K vs. est. of 248K). The more closely watched 4 week moving average dropped to 241,500. Continuing Claims matched expectations at 1.438M
Productivity: The 2nd QTR data has been revised upward. Unit Labor Costs were revised from 10.8% down to 10.2% which in turn, improved Non Farm Productivity from -4.6% to -4.1%
Manufacturing: August ISM Manufacturing PMI was a little stronger than expectations with an expansionary reading of 52.8 vs. est. of 52.0. The Employment Index jumped from 49.9 to 54.2. Prices Paid moved lower from 60.0 to 52.5
Construction: July Construction Spending fell by -0.4% vs. est. of -0.1% however June’s reading was revised upward significantly from -1.1% to -0.5%.
The Fed: We hear from Raphael Bostic today.
Overseas News:
China: A major industrial city of over 21M was locked down over their Zero Covid policy.
TODAY’S POTENTIAL RATE VOLATILITY: HIGH
This morning markets are under a lot of pressure. Volatility has started very 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
