Published Date 9/16/2021
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 higher today. The MBS market improved by -9 bps yesterday. This was not enough to increase mortgage rates or fees. The market experienced moderate volatility yesterday.
Retail Sales: August Retail Sales were much better than expected, rising by 0.7% vs. expectations for a contraction of -0.8%. When you strip out Autos (no inventories due to chip shortages), Retail Sales spiked by +1.8% vs. est. of -0.2%.
Jobs: Initial Weekly Jobless Claims were 332K vs. est. of 328K. The more closely watched 4 week moving average ticked lower to 335.75K. Continuing Claims were 2.665M vs. est. of 2.785M
Manufacturing: The Philly Fed Manufacturing Survey was very strong at 30.7 vs. est. of 19.0
This morning we're seeing a selloff in MBS on positive retail and manufacturing data. Volatility is high to start but will settle down as the markets prepare for next 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.
NMLS: 181064
Mortgage Solutions Group, PLLC
Company NMLS: 2179191
Cell: 512-733-6207
NMLS: 181064
Cell: 512-733-6207
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