Consumer confidence jumps in March to a one-year high

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Published Date 3/30/2021

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: Higher

Rates are moving higher so far today. The MBS market worsened by -2 bps yesterday. This caused rates or fees to mostly move sideways for the day. The rates experienced moderate volatility yesterday.

Today's Rate Forecast: Higher

Housing: The January YOY Case-Shiller 20 city Metro Home Price Index showed an increase of 11.1% vs. est. of 11.0%. It's the fastest pace in 7 years. The January FHFA MOM Housing Price Index showed a 1.0% gain.

Consumer Confidence: The March Reading hit a massive 109.7 vs. est. of 96.4.

Today's Potential Rate Volatility: Average

Rate markets are heading higher so far today on moderate volatility. We had blockbuster housing and consumer confidence numbers this morning, which is helping to keep rates elevated.

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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