Published Date 10/3/2024
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 under pressure today. The MBS market worsened by -7 bps yesterday. This was not enough to increase mortgage rates or fees. The market experienced moderate volatility yesterday.
Jobs: The September Challenger Job Cuts report was about 70K (72,820) for the second straight month which is a very high trend. Initial Weekly Jobless Claims were 225K versus estimates of 220K. The 4 week moving average dropped to 224K. Continuing Claims remained elevated at 1.826M.
Service: The September ISM Non Manufacturing (services) PMI remained in expansionary territory with a better than expected reading of 54.9 versus estimates of 51.7. Prices Paid shot up from 57.3 to 59.4 and the Employment Index moved from 50.2 to 48.1.
Manufacturing: August Factory Orders contracted by -0.2% versus estimates of 0.0%.
The Fed: Today we will hear from Schmid, Bostic and Kashkari.
This morning markets are under pressure. Volatility has started at moderate levels.
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.
NMLS: 258527
Mortgage Goat LLC
130 N Preston rd #318, Prosper TX 75078
Company NMLS: 258527 /133739
Office: 469-628-4544
Cell: 469-628-4544
Email: jc@themortgagegoat.net
NMLS: 258527
Cell: 469-628-4544
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