Three things that can impact rates this week

Published Date 8/29/2022


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 worsened by -22 bps last week. This was enough to increase mortgage rates or fees. The market experienced high volatility last week.

TODAY’S RATE FORECAST: HIGHER

Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) Jobs, 2) The Fed and 3) Manufacturing.

1) Jobs: We get a ton of job and wage related data this week that starts Tuesday with JOLTS and culminates with Big Jobs Friday.

2) The Fed: Now that we heard from everyone on the Fed last week… we will hear from a lot of them again this week, the bond market will be paying close attention to see if any of them are changing their tune or doubling down on the overall theme out of Jackson Hole.

3) Manufacturing: After weeks of regional and lower level manufacturing releases, we get the key measures of manufacturing this week with Chicago PMI, ISM Manufacturing and Factory Orders.

TODAY’S POTENTIAL RATE VOLATILITY: HIGH

This morning markets are under a lot of pressure. Volatility has started high as some traders start hedging their bets.

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