Chris Reese, California Mortgage Hero & Certified Mortgage Planner shares today’s Daily Rate Insider.
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. Tracking these securities real-time is critical. For more information about the rate market, contact me directly. I’m among few mortgage professionals who have access to live trading screens during market hours.
Rates Currently Trending: Neutral
Yesterday’s MBS market was worse by -22bps. According to Sigma Research there was moderate volatility. The movement may have resulted in worse rates for the consumer.
Today’s Rate Forecast: Neutral
The MBS market and mortgage pricing is likely to be fairly neutral. Sigma Research says there’s not a lot of economic data to push the market today or this week. Once again the US and global markets are completely focused on what is happening (and may happen) in the Ukraine and mid-east. It appears that Israel and Hamas are inching closer to a deal, but that can turn on a dime which would be a market moving event. Overall, the markets are based on emotions right now as tensions swing back and forth in Ukraine, Iraq and Israel-making market forecasting a difficult process.
Today’s Potential Rate Volatility: Average
According to Sigma Research the risk for volatility is average today. Because international affairs are hard to predict-high volatility is always a risk. As stated above, if something happens in the Ukraine or mid-east that is not worked into the market today we could see major volatility. We’ll be keeping a close eye on the markets.
Bottom Line:
If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact Chris Reese today at 916-502-1656 or visit http://www.SacramentoHomeLoanSpecialist.com
What"s Up With 30 Year Mortgage Rates today? - Daily Rate Insider
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