Published Date 6/23/2022

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 +32 bps yesterday. This was enough to decrease mortgage rates or fees. The market experienced high volatility yesterday.

TODAY’S RATE FORECAST: LOWER

The Fed: Fed Chair Powell will be in the hot seat for day two of his semiannual Monetary Policy Report. This time it will be in front of the House Banking Committee. Generally, we don’t see any change in his message from one testimony to another. Of note today is the release of the Fed’s Balance Sheet as well as the results of the most recent round of Bank Stress Tests.

Jobs: Initial Weekly Jobless Claims hit 229K vs. est. of 227K. The more closely watched 4 week moving average ticked upward to 223,500. Continuing Claims matched expectations at 1.315M.

Manufacturing: June Prelim Flash PMIs for Manufacturing showed expansion at 52.4 vs. est. of 56.0

TODAY’S POTENTIAL RATE VOLATILITY: HIGH

This morning markets are again improving on recession fears. Volatility is high on overly emotional trading.

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