Published Date 2/27/2020
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 so far today. The MBS market worsened by -5 bps yesterday. This caused rates or fees to move sideways for the day. The rate markets experienced high volatility yesterday.
Housing: January Pending Home Sales MOM was up 5.2% vs. est. of 2.2%.
Jobs: Initial Weekly Jobless Claims hit 219K vs. est. of 212K. The more closely watched 4-week moving average moved up by 25K to 209,750.
GDP: We got the second revision to the previously released 4th QTR GDP, and it remained at 2.1%.
Manufacturing: The January Durable Goods Orders were much better than expected (-0.2% vs. est. of -1.5%), and the December data was revised upward from 2.4% to 2.9%. Ex Transportation, orders were up +0.9% vs. est. of only 0.2%.
Treasury Dump: We have our 7-year Treasury note auction at 1:00 pm ET today.
Coronavirus: As expected, the Cov-19 story continues to get worse. Here are the latest headlines.
Eurozone: Consumer Confidence -6.6 vs. est. of -6.6, Economic Sentiment 103.5 vs. est. of 102.08
Stock and rate market volatility is through the roof today. While rates are mostly flat at this moment, that can quickly change. Markets are trying to digest what the real economic impact will be from the coronavirus. The assessments change from hour to hour as new information unfolds. Look for rates to continue to be volatile throughout the week.
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.
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Mortgage Solutions Group, PLLC
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Cell: 512-733-6207
NMLS: 181064
Cell: 512-733-6207
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