Published Date 7/7/2022
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 worsened by -70 bps yesterday. This was enough to increase mortgage rates or fees. The market experienced high volatility yesterday.
TODAY’S RATE FORECAST: HIGHER
Jobs: We see a big surge in the number of announced corporate layoffs in the June Challenger Job Cuts report which showed 32,517 vs. May’s pace of 20,712. Initial Weekly Jobless Claims grew at a pace of 235K vs. est. of 230K. The more closely watched 4 week moving average increased to 232,500. Continuing Claims were higher than expected, 1.375M vs. 1.327M. We were supposed to get the June ADP Payrolls report at 8:15 am ET but it has not yet been released.
The Fed: We will get the Fed’s Balance Sheet today at 4:30 pm. In the meantime, they will be purchasing 30Y UMBS (Fannie/Freddie) MBS of $186M of 4.0, $531M of 4.5 and $296 of 5.0 coupons for a total of $922M
TODAY’S POTENTIAL RATE VOLATILITY: HIGH
This morning markets are mostly treading water with a slight negative trend. Volatility has started off very choppy.
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
