Home Mortgage Alliance Corporation (HMAC)

The Reserve Bank of Australia left their key rate unchanged

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Published Date 2/6/2024

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 getting some support today. The MBS market worsened by -32 bps yesterday. This may have been enough to increase mortgage rates or fees. The market experienced high volatility yesterday.

Today's Rate Forecast: Neutral

The Fed: We will hear from Mester, Kashkari, Collins and Harker today.

Treasury Auction: We kick off three straight days of dumping our debt into the marketplace with today's shorter term 3 year note.

Central Banks: The Reserve Bank of Australia followed the trend of keeping their interest rate unchanged.

Today's Potential Rate Volatility: High

This morning markets are bouncing back from yesterday's beating. Volatility has started high.

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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