New home sales continue to soar as jobless claims move higher

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Published Date 9/24/2020

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 worsened by -1 bps yesterday. This caused rates or fees to move sideways for the day. The rates experienced moderate volatility yesterday.

Today's Rate Forecast: Neutral

Jobs: Initial Weekly Jobless Claims increased by 870K vs. est. of 843K. The 4-week moving average is now 878.25K. Continuing Claims are 12.580M vs. est. of 12.339M.

Housing: August New Home Sales hit an annualized pace of 1.011M units, which beat out forecasts of 890K.

The Fed: We will hear from Fed Chair Powell today at 10:00 am ET as he testifies before the House Financial Services Committee.

Treasury Dump: We have our 7-year note auction at 1:00 pm ET.

Central Bank: The Swiss National Bank (SNB) kept its key interest rate at -0.375%.

Today's Potential Rate Volatility: Average

Rate markets are once again moving mostly sideways with moderate to low volatility. The economic news today was negative, except for the housing numbers. The negative employment numbers are helping to keep rates at these low levels.

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.