Published Date 10/18/2022
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 slightly lower today. The MBS market improved by +21 bps yesterday. This was not enough to decrease mortgage rates or fees. The market experienced high volatility yesterday.
TODAY’S RATE FORECAST: NEUTRAL
Manufacturing: September Industrial Production was much stronger than expected (0.4% vs. est. of 0.1%). Capacity Utilization also beat out forecasts, 80.3% vs. est. of 80.0% (a 14 year high).
Housing: October NAHB Housing Market Index 38 vs. est. of 43
Inflation: The cost of candy for this Halloween is up 13.1% from this time last year according to the Bureau of Labor and Statistics.
The Fed: Today we hear from Bostic and Kashkari
TODAY’S POTENTIAL RATE VOLATILITY: NEUTRAL
This morning markets have a very modest lean towards better rates. Volatility has started off at moderate levels and is likely to remain that way.
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