Jobless claims matched expectations and manufacturing looking good

___

Published Date 2/20/2020

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 +2 bps yesterday. This caused rates or fees to move sideways for the day. The rates experienced moderate to low volatility yesterday.

Today's Rate Forecast: Neutral

Jobs: Initial Weekly Jobless Claims matched market expectations with 210K. The more closely watched 4-week moving average dropped to 209K.

Manufacturing: The February Philly Fed Manufacturing Survey shot up to the highest reading in 3 years with a 36.7 reading vs. estimates of 12.0.

Central Bank: The People's Bank of China lowered its main interest rate from 4.15% down to 4.05%.

Germany: PPI YOY 0.2% vs. est. of -0.4%

Great Britain: Retail Sales YOY 0.8% vs. est. of 0.7%

Canada: ADP Payrolls 25.9K vs. est. of 71.8K

Today's Potential Rate Volatility: Average

Another round of robust economic data today that rate markets mostly ignored. Markets continue to focus on the coronavirus and the longer-term economic implications. Look for rates to continue to stay at lower levels with moderate to low volatility for the rest of the day.

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.