Mortgage rates eyeing another government shutdown

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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 to slightly higher so far today.  The MBS market worsened by -11 bps yesterday. This may've been enough to worsen mortgage rates or fees.   The rates experienced moderate volatility yesterday.

Today's Rate Forecast: Neutral

Jobs: Initial Weekly Jobless Claims hit 221K vs est of 232K. The more closely watched 4-week moving average dropped to 224,500 which is A 45 year low.

Budget: The House bill that was passed on Tuesday needs to be torn up and they need to have a vote on the 2-year deal that the Senate supports. If the House can pass it, we won’t have to deal with this for 2 -years and removes a lot of doubt/fear in bonds (negative for pricing).

Treasury Auction: 30-year Treasury bond auction. This is the most important auction of the week.

Fed: Today we hear Robert Kaplan, Patrick Harker and Neel Kashkari.

Great Britain: Bank of England kept rates unchanged at 0.5%, and QE flat as expected in a unanimous 9-0 vote. But BOE raised its growth forecast and said that the "Committee judges that, were the economy to evolve broadly in-line with the February inflation report projections, monetary policy would need to be tightened somewhat earlier and by a somewhat greater extent over the forecast period than anticipated at the time of the November report, in order to return inflation sustainability to the target."

China: Their trade balance dropped from 361.98B down to 135.5B. Exports shot up 11.1% and imports also shot up by a massive 36.9% which is signaling strong growth.

Today's Potential Rate Volatility: Average

As the likelihood of a government shutdown rolls back, look for mortgage rates to see a bit of pressure with some volatility. Mortgage rate volatility is starting to come down after a wild few days.

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.

©2015 Finance of America Mortgage LLC | Equal Housing Lender | NMLS 1071 Complaints@financeofamerica.com

Thomas Werbeckes

Mortgage Advisor

NMLS: 1543335

Finance of America Mortgage

6900 S McCarran Blvd #2020, Reno NV

Company NMLS: 1071

Office: 775-332-6629

Cell: 775-742-9128

Email: twerbeckes@financeofamerica.com

Web: http://www.financeofamerica.com/locations/branch-profile?id=c33827bb-71f8-6483-85d2-ff00007a9d7f

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Thomas Werbeckes

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Mortgage Advisor

NMLS: 1543335

Cell: 775-742-9128


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