Initial Weekly Jobless claims continue to show a surprisingly strong labor market
Published Date 2/8/2024
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 worsened by -14 bps yesterday. This was not enough to increase mortgage rates or fees. The market experienced moderate volatility yesterday.
Today's Rate Forecast: Neutral
Jobs: Initial Weekly Jobless Claims were 218K versus estimates of 220K. The more closely watched 4 week moving average moved upward to 212K which is still extremely low. Continuing Claims were 1.871M versus estimates of 1.878M.
Treasury Auction: We have an important 30Y Treasury Bond Auction today at 1 pm.
The Fed: We will hear from Barkin several times.
Today's Potential Rate Volatility: Neutral
This morning markets are under mild pressure. Volatility has started at moderate levels but the 30 Year Bond Auction does present a risk.
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: 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.
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