Volatility remains high after major FOMC meeting

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Published Date 9/19/2024

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 today. The MBS market worsened by -10 bps yesterday. This was not enough to increase mortgage rates or fees. The market experienced high volatility yesterday.

Today's Rate Forecast: Neutral

Housing: We will get the August Existing Home Sales report at 10 am ET, it is expected move downward from 3.95M units on an annualized basis to 3.90M.

Jobs: Initial Weekly Jobless Claims were lower (better) than expected, 219K versus estimates of 230K. Continuing Claims remained elevated at 1.829M.

Manufacturing: We got our second straight regional manufacturing report that was better than expected. The Sep Philly Fed Manufacturing survey cracked into positive territory with a reading of 1.7 versus estimates of -1.0.

Central Banks: The Bank of England kept their main interest rate unchanged at 5.00% it was an 8-1 vote with the one vote wanting a 25BPS cut.

Today's Potential Rate Volatility: High

This morning markets are currently moving sideways. Volatility has started high as markets continue to respond to FOMC.

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.

Boxcar Mortgage, LLC DBA Highland Mortgage | NMLS# 1969375

State Licenses - https://nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1969375 This is not a commitment to make a loan, nor should it be construed as lending advice. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value (LTV) requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on the applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of the loan. Reduction in payments may reflect a longer loan term. Terms of the loan may be subject to the payment of points and fees by the applicant.