Dip in Small Business Optimism puts pressure on markets

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Published Date 1/10/2023

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 today. The MBS market worsened by -3 bps yesterday. This was not enough to increase mortgage rates or fees. The market experienced moderate volatility yesterday.

Today's Rate Forecast: Neutral

The Fed: Fed Chair Powell spoke about the independent role of Central Banks today at 9 am ET but did not address Fed economic policy, rates, etc.

Optimism: The December NFIB Small Business Optimism Index was anything but. It dropped from 91.9 to 89.8

Treasury Sales: We kick off three days of dumping our debt into the marketplace with your shorter term 3 year note auction at 1.

Today's Potential Rate Volatility: Low

This morning markets are under a small amount of pressure. Volatility has started low and it should stay that way pending any surprises.

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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