Published Date 7/31/2023
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 moving sideways today. The MBS market worsened by -23 bps last week. This may have been 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) Central Banks and 3) Manufacturing.
1) Jobs: We get a ton of job and wage related data this week culminating in Big Jobs Friday. The stronger this data is, the worse it will be for rates.
2) Central Banks: We will get key interest rate decisions from Australia and England with the focus on the Bank of England which is expected to increase rates by 25BPS but their commentary will carry a lot of weight.
3) Manufacturing: The big soft-spot in our economy over the last 10 to 12 months has been the manufacturing sector which just continues to contract each month. This week we get a lot of manufacturing news and the bond market will be very focused on any bright spots.
This morning markets are mostly treading water. Volatility has started moderate but we have plenty of big news items on the horizon.
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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