Published Date 7/8/2024
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.
Mortgage rates are moving sideways today. The MBS market improved by +27 bps last week. This may have been enough to decrease mortgage rates or fees. The market experienced high volatility last week.
Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) Inflation, 2) The Fed and 3) Treasury Auction.
1) Inflation: We get two key measures of inflation this week with Thursday's CPI taking center stage. In the previous release, the Headline MOM change was 0.0. This time around it is expected to rise by 0.1 and the Core by 0.2.
2) The Fed: We will hear from Fed Chair Powell twice this week as he testifies before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday. We will also get the Fed's Beige Book on Wednesday which is prepared in advance of the next FOMC meeting.
3) Treasury Auction: We have a huge amount of debt that we are going to dump into the marketplace this week with the bond market focusing on Thursday's 30 year Treasury bond market the most.
07/09 3 year note.
07/10 10 year note.
07/11 30 year bond.
This morning markets are not seeing significant movement. Volatility has started low but will increase later in the week on the inflation data.
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: TBWSAll 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.
NMLS: 258527
Mortgage Goat LLC
130 N Preston rd #318, Prosper TX 75078
Company NMLS: 258527 /133739
Office: 469-628-4544
Cell: 469-628-4544
Email: jc@themortgagegoat.net
NMLS: 258527
Cell: 469-628-4544
10/28/2024
When northern California homeowner...... view more
10/28/2024
These are the three areas that have the greatest ability to impact rates this we... view more
10/28/2024
In global news, Israel made its move on Iran this weekend attacking military ins... view more
10/25/2024
Did you know that in Scotland, a house with a red door signifies the owner has p... view more
10/25/2024
A quiet open this morning, the 10 year note at 4.20% -1 bp; UMBS price at 8:30 a... view more
10/24/2024
When we speak of home, we speak of shelter. And there is no single element that ... view more
10/24/2024
Continuing Jobless Claims hit a 3 YEAR HIGH at 1.897M which Initial Weekly Joble... view more
10/23/2024
Choosing the perfect wood or wood-look flooring for your home doesn't have to fe... view more