Published Date 6/14/2022

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 -129 bps yesterday. This was enough to increase mortgage rates or fees. The market experienced high volatility yesterday.

TODAY’S RATE FORECAST: HIGHER
Inflation: Yet another ugly report as the May Producer Price Index (PPI) increased by 0.8% which is double the April rate of 0.4%. YOY, PPI is up 10.8% vs. est. of 10.9%. Core PPI (ex food and energy) increased by 0.5% which was more than double April’s pace of 0.2%. The market was expecting 0.6%. YOY, it was up 8.3% which was lower than expectations of 8.6%

Optimism: The May NFIB Small Business Optimism Index hit 93.1 vs. est. of 93.0, this is a very low reading.

The Fed: Today the Fed starts two days of meetings which will culminate in Wednesday’s barrage of rate hikes, policy changes, economic projections and a live presser with Powell.

TODAY’S POTENTIAL RATE VOLATILITY: HIGH
This morning markets remain under pressure after yesterday’s beating. Volatility remains high but is lighter than yesterday.

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