Markets calm as they wait on afternoon reports

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Published Date 5/7/2024

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: Neutral

Mortgage rates are getting some minor support today. The MBS market worsened by -5 bps yesterday. This was not enough to increase mortgage rates or fees. The market experienced moderate volatility yesterday.

Today's Rate Forecast: Neutral

Consumer Credit: The March Consumer Credit report will hit at 3 pm and is expected to increase by $15B, bond traders will be focused on the revolving debt component.

Treasury Auction: We kick off three days of dumping a massive $125B into the market place with today's shorter term 3 year note auction of $58 at 1 pm ET.

The Fed: Today we hear from Kashkari.

Central Banks: The Reserve Bank of Australia kept their key interest rate at 4.35%.

Today's Potential Rate Volatility: Neutral

This morning markets are seeing some minor positive movement. Volatility has started at moderate levels but may spike this afternoon.

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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Lillian Wong

Mortgage Broker

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

Web: https://lillianwong.net