Published Date 1/4/2024
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 under light pressure today. The MBS market improved by +7 bps yesterday. This was not enough to decrease mortgage rates or fees. The market experienced moderate volatility yesterday.
Jobs: Challenger Job Cuts dropped from 45.5K in November down to 34.8K in December. The December ADP Private Payrolls were stronger than expected with 164K new additions versus estimates of 115K. Initial Weekly Jobless Claims were lower (stronger) than expected, 202K versus estimates of 216K. The more closely watched 4 week moving average dropped to 207K. Continuing Claims had a small move from 1.886M to 1.855M, still trending well above 1.8M.
This morning markets are under mild pressure. Volatility has started at moderate levels.
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: #437292
400 Arcola Rd., Collegeville PA 19462
Company NMLS: 1611328
Cell: 215-407-3832
NMLS: #437292
Cell: 215-407-3832