Published Date 7/15/2024
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 +34 bps last week. This was enough to decrease mortgage rates or fees. The market experienced high volatility last week.
Three Things: These are the three areas that can have the greatest impact on rates this week. 1) Retail Sales, 2) Treasury Auction and 3) Geopolitical.
1) Retail Sales: The biggest economic release of the week is Tuesday's Retail Sales report. The headline number is expected to be flat at 0.0%, the higher this number is... the worse it will be for rates and vice versa.
2) Treasury Auction: We have an important 20 year Treasury bond auction on Wednesday.
3) Geopolitical: As the markets react to the assassination attempt on former President Trump, they will focus on this week's RNC convention and VP pick as well as policy. They will also focus on President Biden.
This morning markets are moving along the upper limits of their trading channels. Volatility has started at moderate levels but will likely increase later in the week.
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
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