The June Trade balance was better than expected

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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 moving sideways today. The MBS market improved by +11 bps yesterday. This was not enough to decrease mortgage rates or fees. The market experienced high volatility yesterday.

Today's Rate Forecast: Neutral

Trade: The Trade Balance for Goods and Services was better than expected, -60.2B versus estimates of 61.6B and a nice improvement over May's -71.7B.

Services: July ISM Non Manufacturing (services) PMI will hit at 10 am ET. This represents about 2/3 of our economic output and is expected to move up a smidge to 51.5. It dropped to 50.1.

Treasury Auction: We kick off three days of dumping our debt into the marketplace with today's shorter term 3 year note.

The Fed: S.F. Fed President Daly said that time is nearing for rate cuts and that they may need more than 2 by the end of the year.

Today's Potential Rate Volatility: Neutral

This morning markets are seeing mostly sideways trading. Volatility has started at moderate levels.

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.

Source: TBWS

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.

Southern Oaks Mortgage, Inc. is a licensed Broker/Lender with the CA DRE Lic. #01458657, NMLS #237717

Jeffrey Eisenberg

President/Broker

NMLS: 236681

Southern Oaks Mortgage, Inc.

25060 Avenue Stanford, STE 255, Valencia CA

Company NMLS: 237717

Office: 661-964-2600

Cell: 661-904-5989

Email: jeff@somloans.com

Web: http://www.somloans.com

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Jeffrey Eisenberg

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President/Broker

NMLS: 236681

Cell: 661-904-5989


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