The Bank of England remains steadfast in its battle with inflation

___

Published Date 8/3/2023

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 under pressure today. The MBS market worsened by -16 bps yesterday. This was not enough to increase mortgage rates or fees. The market experienced moderate volatility yesterday.

Today's Rate Forecast: Neutral

Jobs: The July Challenger Job Cuts were only 23,697 versus 40,709 in June. It was over 80K in May. Initial Weekly Jobless Claims were bang on estimates, 227K versus estimates of 227K. The more closely watched 4 week moving average dropped to 228K. Continuing Claims were 1.7M versus estimates of 1.7M.

Manufacturing: The preliminary 2nd QTR Non Farm Productivity hit 3.7% versus estimates of 2.0%. Unit Labor Costs rose by only 1.6% versus estimates of 2.6%. June Factory Orders increased 2.3% by versus estimates of 2.2%.

Services: The July ISM Services (2/3 of our economy) showed expansion with a reading of 52.7 which just missed expectations of 53.0. Prices paid jumped up to 56.8 versus estimates of 52.1. The Employment Index was 50.7 versus estimates of 51.1.

Central Banks: The Bank of England increased their interest rate by 25 basis points to 5.25% which was widely expected. The vote was 8-1, it was 7-2 at their previous meeting. They signaled that they are not done with their tightening cycle and would be raising rates further until inflation comes down.

Today's Potential Rate Volatility: High

This morning markets continue to be under pressure. Volatility is high as the market continues to test its trading channels.

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.

• < Prev
• Next >

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.

Guardian Mortgage, a division of Sunflower Bank, N.A.

Dean Wegner

Mortgage Area Manager

NMLS: 220741

Guardian Mortgage

16430 N Scottsdale Rd #120, Scottsdale AZ

Company NMLS: 709491

Office: 602-432-6388

Cell: 480-286-3303

Email: deanwegner@gmc-inc.com

Web: https://www.guardianmortgageonline.com/loanoriginators/Dean-Wegner