Published Date 12/26/2023
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 getting some minor support today. The MBS market changed by +0 bps last week. This was not enough to change mortgage rates or fees. The market experienced low volatility last week.
Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) Geopolitical, 2) Manufacturing and 3) Treasury Auction.
1) Geopolitical: Concern over the U.S. retaliatory strikes in Iraq and continued concern over the Red Sea, Gaza, Russia and more will be on top of minds of traders this week with limited economic news to drive markets.
2) Manufacturing: We get the bellwether Chicago PMI this week along with the Richmond Fed Manufacturing Index.
3) Treasury Auction: We have one last batch of debt to dump into the marketplace before the year ends. Demand for our debt will be a large factor.
12/26 2 year note
12/27 5 year note
12/28 7 year note
This morning markets are getting some minor support on geopolitical concerns. Volatility has started low and is likely to stay that way baring major disasters.
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.
View the full disclaimer and licensing details at https://homemac.com/mortgage-banker-disclaimer.
NMLS: HMAC #1165808
Home Mortgage Alliance Corporation (HMAC)
4 Hutton Centre Dr, Santa Ana CA 92707
Company NMLS: 1165808
Office: 800-900-7040
Cell: 310-980-7157
Email: info@homemac.com
Web: https://homemac.com
NMLS: HMAC #1165808
Cell: 310-980-7157
4/26/2024
It’s the nightmare we think only happens in the movies. “We have to pack,” says ... view more
4/26/2024
Yesterday the release of the advance Q1 GDP sent rates up and MBS prices lower. ... view more
4/25/2024
When it comes to curb appeal, there are things you can do to update your house. ... 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
4/23/2024
We will get the high-frequency S&P Markit MFG and Services PMI at 9:45 am ET. Bo... 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
The 10 year note at 8:30 am ET improved from overnight levels, at 8:30 am 4.64% ... view more