Federal Reserve dominates market news

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Published Date 1/11/2022

Today's Mortgage Rate Summary

How Rates Move:

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.

Rates Currently Trending: Higher

Mortgage rates are moving higher today. The MBS market worsened by -20 bps yesterday. This may have been enough to increase mortgage rates or fees. The market experienced high volatility yesterday.

Today's Rate Forecast: Higher

The Fed: We hear from a few key Federal Reserve figures today: Mester, George, Bullard and Powell. Fed President Loretta Mester said that the Fed needs to "recalibrate" their policy stance and inflation is higher than they would like. Fed Chair Powell is speaking in front of Congress as part of his Nomination Hearing.

Small Business Optimism: The NFIB Small Business Optimism Index moved from 94.8 in November to 98.9 in December.

Treasury Sales: We kick off three straight days of dumping our debt into the marketplace with our shorter term 3 year note.

Today's Potential Rate Volatility: High

This morning the sell off continues. Volatility is high as markets watch Powell's confimration hearing.

Bottom Line:

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.

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All 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 #113731

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LaVerne StMary

Sr. Mortgage Loan Professional

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Mortgages and Lifestyle

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