Jobless claims come in better than expected

___

Published Date 7/9/2020

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 moving sideways so far today. The MBS market improved by +4 bps yesterday. This caused rates or fees to mostly move sideways for the day. The rates experienced low volatility yesterday.

Today's Rate Forecast: Neutral

Jobs: Initial Weekly Jobless Claims hit 1.314M vs. est. of 1.375M. The four-week moving average is now 1.437M. Continuing Claims were 18.062M vs. est. of 18.950M.

Treasury Dump: We have the 30Y bond auction at 1:00 pm ET today.

Coronavirus: Here are the main headlines that are driving bond trades today.

U.S. daily cases break above 60K for a second straight day.
California, Texas, and Arizona shatter COVID records.
Connecticut, Ohio, and Washington delayed planned reopening measures or explicitly put reopening on hold. States containing over 40% of the population have now put reopening on hold, and states with another 30% have increased restrictions. (That's 70% of our population).
Global rate now above 12M.
Tokyo and Hong Kong report single-day highs of new cases.
India added another 23K cases.

Today's Potential Rate Volatility: Low

Rates have continued to show very little volatility over the last month, and we expect the same today. However, almost every day over the last month, there's been a very slight improvement in the MBS market that's building up to better rates.

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.

Source: TBWS

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.

Wymac Capital, Inc.

LICENSING:
CalRE: 01121628
NMLS: 18766