Published Date 5/6/2024
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.
Mortgage rates are moving sideways today. The MBS market improved by +54 bps last week. This may have been enough to decrease mortgage rates or fees. The market experienced high volatility last week.
Three Things: These are the three areas that have the greatest ability to impact rates this week: 1) Treasury Auction, 2) Central Banks and 3) The Fed.
1) Treasury Auction: We have yet another record breaking week in terms of the sheer amount of debt that we are dumping into the market place with $125B needing to be absorbed:
05/07 3 YR Note $58B
05/08 10 YR Note $42B
05/09 30 YR Bond $25B
2) Central Banks: We have a few Central Banks this week but the focus will be on the Bank of England on Thursday.
3) The Fed: Last week, the FOMC Policy was "hawkish" but Powell was "dovish". This week's round of Fed Speak could give bond traders yet another perspective.
05/06 Barkin and Williams
05/07 Kashkari
05/08 Jefferson, Collins, Cook
05/09 Balance Sheet
05/10 Bowman, Goolsbee, Barr
This morning markets are not seeing big movements. Volatility has started low but may increase later in the week on Fed comments.
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: TBWSAll 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.
NMLS: 38412
Northpointe Bank
8660 College Parkway, Suite 150, Fort Myers FL
Company NMLS: 447490
Cell: 239-470-6310
Email: cheidt@heidtfinancialllc.com
NMLS: 38412
Cell: 239-470-6310
5/17/2024
This market. Call it what you will, because today’s homebuyers no doubt have all... view more
5/17/2024
After a week full of key data, today nothing but Leading Economic Indicators whi... view more
5/16/2024
Ever walk into a house and see something that reminded you of your childhood, bu... view more
5/16/2024
April Import Prices increased on a MOM basis of 0.9% versus estimates of 0.3%. E... view more
5/15/2024
Mosquitoes and flies and wasps — oh my! Apart from some neighbor booming music o... view more
5/15/2024
Traders and markets waited two weeks for current inflation data, yesterday April... view more
5/14/2024
Homeowner. It’s a word not as many members of younger generations can slap on th... view more
5/14/2024
The April headline Producer Price Index appeared to be much hotter than expected... view more
5/13/2024
The drive to bring down-home prices is not going well...... view more