Published Date 9/6/2022
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 -26 bps last week. This may have been enough to increase mortgage rates or fees. The market experienced high volatility last week.
THIS WEEK’S RATE FORECAST: HIGHER
Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) Central Banks, 2) The Fed, and 3) Domestic News
1) Central Banks: We will get key interest rate decisions and policy statements from Australia, Canada and the ECB. All are expected to raise interest rates by at least 50 basis points. The markets will give the most weight to the ECB.
2) The Fed: We will hear from Fed Chair Powell on Thursday and we will get their Beige Book on Wednesday.
09/07 Mester, Brainard, Barr and the Beige Book
09/08 Powell, Evans, Balance Sheet
09/09 Evans and Waller
3) Domestic News: The biggest economic release of the week is the ISM Non Manufacturing report on Tuesday. The next level lower of economic data would be Thursday’s Initial Jobless Claims data.
THIS WEEK’S POTENTIAL RATE VOLATILITY: HIGH
This morning markets are under pressure as traders put money back to work. Volatility is high to start but will likely calm later in the week.
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
