Home Mortgage Alliance Corporation (HMAC)

The Bank of Japan kept its key interest rate unchanged

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Published Date 1/23/2024

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 improved by +2 bps yesterday. This was not enough to decrease mortgage rates or fees. The market experienced moderate volatility yesterday.

Today's Rate Forecast: Neutral

Manufacturing: We will get the January Richmond Fed Manufacturing Index at 10 am ET, it is expected to contract again - this time by -7.

Treasury Auction: We kick off three days of dumping our debt into the marketplace with today's shorter term 2 year note at 1 pm.

Central Banks: The Bank of Japan kept its key interest rate at -0.1% and made no change to its forward guidance.

Today's Potential Rate Volatility: Neutral

This morning markets are 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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