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Daily Mortgage Market Overview

Mortgage

MORTGAGE RATES FLAT AFTER WILD WEEK

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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 so far today. The MBS market worsened by -14 bps yesterday. This may’ve been enough to worsen mortgage rates or fees. The market experienced high volatility yesterday.

TODAY’S RATE FORECAST: NEUTRAL

Fed: St. Louis Fed President James Bullard (non-voting member) and S.F. Fed President John Williams (non-voting member) will speak today.

Oil: WTI Oil is testing $50 and today’s Oil Rig Count will have an impact, but more important is the OPEC extension of production cuts…their committee is reviewing proposals right now, and I am sure we will have lots of “leaks” on the discussions. OPEC meets next Thursday.

Germany: Inflation is running hotter than expected. Their April PPI was double the market expectations (0.4% vs est of 0.2%).

ECB: Retail Sales were very strong (0.7% vs est of 0.4%), but inflation is tame with their YOY CPI at only 1.6%.

TODAY’S POTENTIAL RATE VOLATILITY: AVERAGE

We’re looking for mortgage rates to settle a bit today after a very volatile week. No new economic data due out today that can move mortgage rates.

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.

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