Markets will be focused on the afternoon release of the Fed Beige Book

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Published Date 10/23/2024

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 under pressure today. The MBS market worsened by -9 bps yesterday. This was not enough to increase mortgage rates or fees. The market experienced moderate volatility yesterday.

Today's Rate Forecast: Neutral

Housing: Weekly Mortgage Applications contracted by -6.7%. Refinances were down -8.4% and Purchases were down -5.1%. September Existing Home Sales were 3.84M versus estimates of 3.90M units on an annualized basis.

The Fed: Today we will get the Fed's Beige Book at 2 pm ET and hear from Barkin and Bowman.

Treasury Auction: We will have a very key 20Y Treasury Bond auction today at 1 pm.

Central Banks: The Bank of Canada lowered their key interest rate from 4.25% down to 3.75%. We will also hear from the heads of the Bank of Japan, Bank of England and ECB.

Today's Potential Rate Volatility: Neutral

This morning markets continue to be under pressure. Volatility has started at moderate levels.

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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