Published Date 5/20/2019
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 trending sideways to slightly higher this morning. Last week the MBS market improved by +20bps. This may've been enough to move rates or fees slightly lower last week. We saw moderate rate volatility throughout the week.
Three Things: These are the three areas that have the greatest ability to impact mortgage rates this week. 1) Fed, 2) Trade War and 3) Geopolitical.
1) Fed: We are fast approaching the June FOMC meeting, and the bond market will be focused intently on the collective message that this week's talking feds send out. We get the Minutes from the last FOMC meeting. We will also get the Minutes from the last ECB meeting and have a speech from ECB President Draghi. Here is the very packed schedule for the week:
2) Trade War: China says that it is in "no rush" to resume trade talks but has invited U.S. Treasury Secretary Mnuchin back to China. Meanwhile, on the Huawei front, Google's Alphabet has announced that it will cut off Huawei Mobile's access to most of its Android operating system offerings. Also, German chipmaker Infineon Technologies said it would suspend deliveries to Huawei.
3) Geopolitical: Tensions continue to escalate between the U.S. and Iran and will be closely watched. But it's Europe that may have a more immediate impact. The EU Parliament will start four days of elections on Thursday.
The bond market will be paying close attention to the geopolitical events and the overall tone of the Fed speakers. We're not expecting rates to push out of the current tight range unless something unexpected happens geopolitically.
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.
First
Priority Home Loans is a DBA of Anchor Funding, Inc. NMLS #236419 &
1626581. California
Bureau of Real Estate,
Real
Estate Broker Number 01276087. Loans made or arranged pursuant
to the
California Department of Business Oversight. California Finance Lenders Law
license number 603 L293.
NMLS: 220937
First Priority Home Loans
891 Kuhn Drive #204, Chula Vista CA
Company NMLS: 236419
Office: 619-323-2066
Cell: 619-208-6499
Email: andrefunds4u@sbcglobal.net
NMLS: 220937
Cell: 619-208-6499
4/25/2024
When it comes to curb appeal, there are things you can do to update your house. ... view more
4/25/2024
The preliminary 1st QTR GDP was much lighter than expected, showing a QoQ increa... view more
4/24/2024
March durable goods orders expected +2.3%, increased 2.6% but February orders we... view more
4/23/2024
You may see it as a sign of good luck when a wild bird or two visits your porch.... view more
4/22/2024
Click the link; buy a sofa. Click on another; buy a pergola for your backyard...... view more
4/22/2024
These are the three areas that have the greatest ability to impact rates this we... view more
4/19/2024
Cosmetically all the hard work had already been done for them. What they didn’t ... view more
4/18/2024
This is fun, interesting information that everyone enjoys. Every report is a lit... view more