Published Date 2/1/2024
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 sideways today. The MBS market improved by +20 bps yesterday. This may have been enough to decrease mortgage rates or fees. The market experienced high volatility yesterday.
Jobs: The January Challenger Job Cuts showed a very large spike in corporate announced layoffs from 35K in December to 82K in January. Initial Weekly Jobless Claims were a little higher than expected, 224K versus estimates of 212K. The more closely watched 4 week moving average ticked up to 207K which is still very low. Continuing Claims were 1.898M versus estimates of 1.840M.
Manufacturing: The preliminary 4th QTR Non Farm Productivity rate was much better than expected, up 3.2% versus estimates of 2.5%. Unit Labor Costs rose at a very tame 0.5% versus estimates of 1.7%. The benchmark ISM Manufacturing PMI remained in contractionary territory with a reading of 49.1 versus estimates of 47.0. Prices Paid were 52.9 versus 46.9 and the Employment Index was 47.1.
Construction: December Construction Spending 0.9% versus estimates of 0.5%.
Central Banks: The Bank of England kept their key interest rate at 5.25%. They had one vote to lower rates and 2 votes to increase rates and the rest of the votes were to leave it alone.
This morning markets are mostly moving sideways. Volatility has started low.
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.
Millenium Home Mortgage, LLC NMLS # 51519 Licensed by the NJ Department of Banking and Insurance, CT Mortgage Banker 1st and 2nd Mortgages Licensed as MHM Home Mortgage, Licensed by the Pennsylvania Department of Banking. All interest rates, fees and programs are subject to change without notice. THIS ENTIRE SITE IS NOT INTENDED AS A SOLICITATION FOR MORTGAGE LOAN CUSTOMERS IN NEW YORK, PENNSYLVANIA, OR CONNECTICUT.
NMLS: 65345
Millenium Home Mortgage LLC
211 North Ave East, Westfield NJ
Company NMLS: 65378
Office: 908-588-7601
Cell: 908-875-7918
Email: jgalayda@mhmlender.com
NMLS: 65345
Cell: 908-875-7918
9/26/2024
Headline August Durable Goods Orders were 9.9% versus estimates of -2.6%...... view more
9/25/2024
Call it scoping out the competition or call it being nosy, but...... view more
9/23/2024
In a remarkable turn of events, the US housing market has witnessed a dramatic i... view more
9/23/2024
In a remarkable turn of events, the US housing market has witnessed a dramatic i... view more
9/23/2024
These are the three areas that have the greatest ability to impact rates this we... view more
9/20/2024
All that money for your dream home just left your account. Soon you’ll hear the ... view more
9/20/2024
No significant news this morning, markets still digesting what the Fed means usi... view more
9/19/2024
Initial Weekly Jobless Claims were lower (better) than expected, 219K versus est... view more
9/18/2024
Move over, garden hose – there's a new hero in town...... view more
9/16/2024
As the real estate market continues to challenge buyers with high prices and hef... view more