THIS WEEK'S MORTGAGE RATE SUMMARY HOW RATES MOVE: Conventional and Government (FHA and VA) lenders…
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: LOWER
Rates markets are moving slightly lower so far today. The MBS market worsened by -23 bps yesterday. This caused rates or fees to move slightly higher for the day. The rates experienced moderate volatility yesterday.
TODAY’S RATE FORECAST: NEUTRAL
Jobs: Initial Weekly Jobless Claims came in close to expectations (444K vs. est. 450K). Georgia, Kentucky, and Texas saw the largest drop. The more closely watched 4-week moving average dipped to 504K. Continuing Claims were higher than expected, 3.751M vs. estimates of 3.640M. There are still 16M people receiving some form of government assistance.
Philly Fed: Their May Business Outlook was lower than expected, 31.5 vs. estimates of 43.0.
Leading Indicators: The April Leading Economic Indicators were higher than expected, 1.6% vs. estimates of 1.2%.
Central Bank: The People’s Bank of China kept its key interest rate at 3.85%.
TODAY’S POTENTIAL RATE VOLATILITY: AVERAGE
Jobless claims are heading in the right direction. However, there are still 16 million people out of work which is helping to keep rate markets suppressed. Look for volatility to remain moderate to low for the rest of the day.
If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact Ken at Mortgage-Boss.com to discuss it with him.