Three things that could impact rates this week

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Published Date 9/5/2023

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 mild pressure this morning. The MBS market improved by +44 bps last week. This may have been enough to decrease mortgage rates or fees. The market experienced high volatility last week.

Today's Rate Forecast: Neutral

Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) The Fed, 2) Central Banks, 3) Services.

1) The Fed: This is the last full week of commentary/speeches before their media black out period leading up to the next FOMC meeting. This week will get the Fed's Beige Book and hear from Susan Collins, John Williams and Raphael Bostic.

2) Central Banks: We will get a key interest rate decision and policy statement on Wednesday out of the Bank of Canada.

3) Services: The biggest economic report of the week will be Wednesday's ISM Non Manufacturing PMI which is about 2/3 of our economic engine.

Today's Potential Rate Volatility: Neutral

This morning markets are under mild pressure. Volatility has started at moderate levels but may spike on news this week.

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.

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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