Three things that can impact rates this week

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Published Date 12/27/2022

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: Neutral

Mortgage rates are moving slightly higher today. The MBS market worsened by -39 bps last week. This was enough to increase mortgage rates or fees. The market experienced high volatility last week.

This week's Rate Forecast: Neutral

Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) Manufacturing, 2) Jobs and 3) EOY

1) Manufacturing: Will our manufacturing recession continue fall deeper into the hole? This week we get key readings from Chicago PMI and the Richmond Fed.

2) Jobs: Initial Jobless Claims will take center stage this week as a precursor to next week's big jobs Friday.

3) End of Year: We have a fairly light week for economic data, kind of a pause between last week's PCE and next week's Jobs data.

Treasury Sales: We have three auctions this week.

12/27 2 year note

12/28 5 year note

12/29 7 year note

This week's Potential Rate Volatility: Neutral

This morning markets are leaning higher. Volatility has started at moderate levels with many markets trading at reduced capacity this week.

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.

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