Three things that could impact rates this week

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Published Date 7/7/2025

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 a little pressure today. The MBS market worsened by -14 bps last week. This was not enough to increase mortgage rates or fees. The market experienced high volatility last week.

This week's Rate Forecast: Neutral

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

1) Geopolitical: The bond market is still handicapping the "Big Beautiful Bill" and trade/tariffs will drive markets this week. The latest is that Treasury Sec Bessent says that there are several trade announcements ahead and the White House is sending out letters to several countries today notifying them of their tariff rate.

2) Inflation: We will get CPI and PPI this week as well as Import/Export Prices.

3) The Fed: The Fed's July meeting is fast approaching and their "media blackout" period starts this Friday. The bond market will focus on their take on the Jobs data that just hit as well as this week's round of inflation data. We also get the Fed's Beige Book on Wednesday.

This week's Potential Rate Volatility: High

This morning markets are seeing some mild pressure. Volatility has started at low to moderate levels but will increase later 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.

American Home Lending USA, LLC - NMLS ID: 71983. To verify licensing, visit NMLS Consumer Access (www.nmlsconsumeraccess.org). Equal Housing Lender.

Jeff Beck

President

NMLS: 19488

American Home Lending USA, LLC

240 S Buchanan St, Edwardsville IL 62025

Company NMLS: 71983

Office: 618-310-0091

Cell: 618-806-2281

Email: jbeck@ahlusa1.com

Web: https://www.americanhomelendingusa.com/