Published Date 4/3/2023
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 getting a mild boost today. The MBS market worsened by -7 bps last week. This was not enough to increase mortgage rates or fees. The market experienced high volatility last week.
Three Things: These are the three areas that have the greatest ability to impact rates this week: 1) Jobs, 2) The Fed and 3) Overseas News.
1) Jobs: We get a ton of job and wage related data this week that culminates in Big Jobs Friday. The overall strength of the labor market along with wage pressures (or lack thereof) can have a very large impact on backend pricing.
2) The Fed: The long bond market will continue to focus heavily on the Federal Reserve and their rate hike path and will continue to hedge based upon those expectations. This week we will hear from Bullard, Cook, Mester.
3) Overseas News: Concern over the European banking crisis, OPEC, and interest rate decisions from Australia and New Zealand will be in focus.
This morning markets are getting a small boost on chaotic foreign news. Volatility has started high and will likely spike throughout 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: 250609 / DRE 01137630
Allianze Mortgage Services
15820 Whittier Blvd. Suite G, Whittier CA 90603
Company NMLS: 346138 / DRE 01403147
Office: 949-241-2527
Cell: 949-241-2527
NMLS: 250609 / DRE 01137630
Cell: 949-241-2527
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