Mortgage rates flat as stock market hits record highs

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Published Date 10/3/2017

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 moving sideways so far today. The MBS market improved by +6 bps yesterday. This probably wasn't enough to improve mortgage rates or fees. The market experienced low volatility yesterday.

Today's Rate Forecast: Neutral

Total Vehicle Sales: Throughout the day, each manufacturer will release their sales data and by the end of the day we will know the final number. Generally, this report does not impact mortgage rates.

Fed: Fed Governor Jerome Powell will speak on Regulatory Reform today. We'll see if there are any snippets about the future path of Fed action.

Japan (number 3 economy): Consumer Confidence was higher than expected (43.9 vs est of 43.5).

Eurozone: Inflation was hotter than expected with their YOY PPI hitting 2.5% vs est of 2.3%. MOM PPI was 0.3% vs est of 0.1%.

Today's Potential Rate Volatility: Low

There isn't any economic news due out today that has the ability to significantly move mortgage rates. Look for rates to trend sideways with relatively low volatility.

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

All 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.