Published Date 5/20/2024
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 +16 bps last week. This was not enough to decrease 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) The Fed, 2) Treasury Auction and 3) Geopolitical
1) The Fed: We have a huge amount of scheduled speeches this week. The bond market will be very keen to see if there is any change in tone after last week's round of inflation and Retail Sales data.
05/20 Bostic, Barr, Waller, Jefferson
05/21 Barkin, Waller, Williams, Bostic, Barr
05/22 FOMC Minutes, Atlanta Fed Business Inflation Expectations
05/23 Bostic
05/24 Williams
2) Treasury Auction: We have an important 20 year Treasury Bond auction on Wednesday that has a very strong correlation to MBS.
3) Geopolitical: With the lack of meaningful major domestic economic data this week, geopolitical issues such as the death of Iran's President, Israel/Hamas, etc will drive bond yields.
This morning markets are not seeing significant movement. Volatility has started low but may increase 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.
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
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