Published Date 10/21/2024
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 moving higher today. The MBS market worsened by -16 bps last week. This was not enough to increase mortgage rates or fees. The market experienced moderate volatility last week.
Three Things: These are the three areas that have the greatest potential to impact rates this week. 1) The Fed, 2) Central Banks and 3) Treasury Auction.
1) The Fed: This is the last week before the Fed's media "blackout" period that leads up to their November Fed Meeting. So, this is the last chance for Fed speakers to get their opinions out there.
10/21 Daly, Logan, Kashkari and Schmid
10/22 Harker
10/23 Bowman, Barkin and the Beige Book
10/24 Hammack
2) Central Banks: We will get key rate decisions out of China and Canada, both are expected to cut rates. The amount of the cuts and the forward guidance will have an impact on rates.
3) Treasury Auction: We have an important 20 year Treasury Bond auction on Wednesday at 1 pm ET.
This morning markets took a big initial hit. Volatility has started high but will likely moderate later in the week.
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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