Home Mortgage Alliance Corporation (HMAC)

Another mild day for markets as China maintains its key rate

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Published Date 8/20/2024

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 +7 bps yesterday. This was not enough to decrease mortgage rates or fees. The market experienced low volatility yesterday.

Today's Rate Forecast: Neutral

The Fed: We will hear from Atlanta Fed President Bostic and Vice Chair Barr today.

Central Banks: The People's Bank of China kept their key interest rate at 3.35%.

Germany: PPI MOM 0.2% versus estimates of 0.2%.

Eurozone: Consumer Prices MOM 0.0% versus estimates of 0.0%.

Canada: CPI MOM 0.4% versus estimates of 0.3%.

Today's Potential Rate Volatility: Low

This morning markets continue to move within a narrow range. Volatility has started low.

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

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