Published Date 9/29/2022
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 improved by +85 bps yesterday. This was enough to decrease mortgage rates or fees. The market experienced high volatility yesterday.
TODAY’S RATE FORECAST: HIGHER
Jobs: Initial Weekly Jobless Claims continue to be better than expected. This time around they were only 193K vs. est. of 215K. This makes the more closely watched 4 week moving average drop to 207K. Continuing Claims were also lower than expected, 1.347M vs. est. of 1.388M
GDP: The 2nd QTR GDP remained at -0.6%, since it was not revised into the positive territory we officially (after all revisions) have two consecutive quarters of negative GDP. The Prices Paid component was revised upward from 9.0% to 9.1%
The Fed: We hear from Mester and Day today, we get the Fed’s latest balance sheet at 4:30 pm ET.
TODAY’S POTENTIAL RATE VOLATILITY: HIGH
This morning markets are dropping again. Volatility will remain high as markets remain in turmoil.
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