1st Quarter GDP revised lower

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Published Date 5/30/2024

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: Lower

Mortgage rates are getting some support today. The MBS market worsened by -12 bps yesterday. This was not enough to increase mortgage rates or fees. The market experienced high volatility yesterday.

Today's Rate Forecast: Neutral

Jobs: Initial Weekly Jobless Claims hit 219K versus estimates of 218K. The four week moving average ticked up to 222K. Continuing Claims stayed below 1.8M with 1.791M.

GDP: The previously released 1st QTR GDP was revised from 1.6% down to 1.3%.

The Fed: Today we will hear from Logan and Williams.

Today's Potential Rate Volatility: Neutral

This morning markets are seeing some bounce back after two days of losses. Volatility has started at moderate to high levels with little chance of significant change ahead of PCE on Friday.

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.

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