Published Date 8/14/2018
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 so far today. The MBS market worsened by -4 bps yesterday. This wasn't enough to worsen mortgage rates or fees. The rates experienced low volatility yesterday.
Genco Olive Oil: Import Prices YOY increased by 4.8% vs est of a 4.6% increase. It is the highest level since February 2012. Tariff effects on metals appear to be fading. Prices for imported iron & steel, which spiked in April and May, did rise 0.3 percent in July but June was soft at only a 0.1 percent gain. Still, the year-on-year rate does show the effects, at 19.2 percent. Prices for imported aluminum fell 1.8 percent in July with this yearly rate at plus 9.7 percent.
Small Business Optimism: The July NFIB Index increased yet again. This time all the way up to 107.9 which beat out estimates of 107.00. It is now at the 2nd highest reading in 45 years and just 0.1 off the all-time record. Expectations that the economy will improve rose by 2 points to a net 35 percent, while a net 32 percent of small business owners reported they thought that now is a good time to expand, up 3 points from the June. Also increasing versus June were plans to make capital outlays, which rose 1 point to net 30 percent.
China: Retail Sales YOY 8.8% vs est of 9.0%
Japan: Industrial Production -0.9% vs est of -5.0%
Germany: 2nd QTR YOY GDP 2.3% vs est of 2.5%
Great Britain: Unemployment Rate 4.0% vs est of 4.2%
Eurozone: GDP YOY 2nd QTR 2.2% vs est of 2.1%
Once again today, mortgage rates are likely to move sideways with little volatility. The data today pretty much gave the markets what it expected, strong employment and a bit of inflation. There's no economic data due out today that is likely to move rates out of the tight channel.
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.
“Equal Housing Lender. NEXA Mortgage, LLC NMLS 1660690. I am a licensed mortgage originator, NMLS # 630337, and licensed to originate mortgage loans in the state of Arizona, Arkansas, California, Florida, Georgia, Illinois, Missouri, Nevada, Tennessee, and Texas. To learn more, visit my NEXA Mortgage website at http://lillianwong.net."
NMLS: 630337
NEXA Mortgage
3100 W Ray Rd Ste 201, Chandler AZ 85226
Company NMLS: 1660690
Office: 480-650-5412
Cell: 480-650-5412
Email: lwong@nexamortgage.com
NMLS: 630337
Cell: 480-650-5412
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