The July Producer Price Index indicates slowing inflation

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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 sideways today. The MBS market improved by +2 bps yesterday. This was not enough to decrease mortgage rates or fees. The market experienced low volatility yesterday.

Today's Rate Forecast: Neutral

Inflation: The July Headline Producer Price Index (PPI) matched market expectations by rising 0.1% on a MOM basis. YOY, it was 2.2% versus estimates of 2.3% and a nice drop from June's revised level of 2.7%. Core PPI was flat at 0.0% which was much lower than expectations of 0.2%. YOY, it was 2.4% versus estimates of 2.7%.

The Fed: We will hear from Atlanta Fed President Bostic this afternoon.

Today's Potential Rate Volatility: Neutral

This morning markets are moving in a narrow trading channel. Volatility has started at moderate levels with the PPI data.

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.

View the full disclaimer and licensing details at https://homemac.com/mortgage-banker-disclaimer.

David D'Angelo

HMAC Social Media Manager

NMLS: HMAC #1165808

Home Mortgage Alliance Corporation (HMAC)

4 Hutton Centre Dr, Santa Ana CA 92707

Company NMLS: 1165808

Office: 800-900-7040

Cell: 310-980-7157

Email: info@homemac.com

Web: https://homemac.com

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David D'Angelo

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HMAC Social Media Manager

NMLS: HMAC #1165808

Cell: 310-980-7157


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