Rate markets flat ahead of US-Canada trade deadline

___


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 so far today.  The MBS market worsened by -5 bps yesterday. This probably wasn't enough to worsen mortgage rates or fees.   The rates experienced low volatility yesterday.

Today's Rate Forecast: Neutral

Jobs: Initial Weekly Jobless Claims came in close to expectations (213K vs est of 214K), the more closely watched 4-week moving average dropped to 212,250 which is an extremely low level.

PCE: The Fed's preferred measure of inflation hit a six-year high as the Core PCE number FINALLY hit 2.0% (the Fed's target rate). The Headline PCE number continues to trend above 2.0% with a 2.3% vs est of 2.2% level. Spending picked up by 0.4% on a MOM basis, and income grew by 0.3%, both matched market expectations.

Trade War: The EU trade chief Cecilia Malmström said they may be willing to end all tariffs on industrial goods (including automobiles) from the U.S. as part of a deal. Meanwhile, Canada is still in town, and both sides say they are "optimistic" about getting a deal done by Friday. But while these two scenarios appear to be gaining some traction, we see the opposite with China.

Germany: Unemployment Rate 5.2% vs est of 5.2%, CPI YOY 2.0% vs est of 2.0%.

Eurozone: Consumer Confidence -1.9 vs est of -1.9.

Canada: GDP 2nd QTR 2.9% vs est of 3.0%.

Today's Potential Rate Volatility: Average

Mortgage rates are moving sideways even with solid jobless claims and signs of inflation. Typically, this would push rates higher. The trade discussions with Canada are helping to keep a lid on rates. If we get an agreement today, we're likely to see rates and volatility go up.

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

Avatar

Thomas Werbeckes

___

Mortgage Advisor

NMLS: 1543335

Cell: 775-742-9128


Last articles

___


Mortgage Calculator

___


Scroll top