Initial Weekly Jobless Claims continue to come in under expectations

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Published Date 2/23/2023

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 improved by +13 bps yesterday. This was not enough to decrease mortgage rates or fees. The market experienced moderate volatility yesterday.

Today's Rate Forecast: Neutral

Jobs: Initial Weekly Jobless Claims were once again lower than expected, 192K vs. est. of 200K. The more closely watched 4 week moving average is now 191K. Continuing Claims hover near year highs but pulled back to 1.654M vs. est. of 1.700M

GDP: The previously released 4th QTR GDP was revised lower from 2.9% down to 2.6% as consumer spending was lowered. Prices Paid were revised much higher from 3.2% to 3.7%

The Fed: The Chicago Fed National Activity Index was very low but better than expected at 0.23 vs. est. of 0.3. We will hear from Bostic and Daly today.

Treasury Sales: We have a 7 year note auction today at 1 pm ET. Treasury Secretary Yellen gave a speech were she updated/improved her economic outlook compared to where she was in the Fall.

Today's Potential Rate Volatility: Neutral

This morning markets have been moving in a narrow channel. Volatility has been a little choppy but without significant change.

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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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

Russell McDonald

NMLS: NMLS: 290837 | Broker CalRE: 01150730

Wymac Capital, Inc.

346 Rheem Blvd #107, Moraga CA 94556

Company NMLS: 18766

Office: 925-937-4300

Email: russellm@wymac.com

Web: https://wymac.com