Published Date 4/28/2020
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 are moving slightly lower so far today.
The MBS market worsened by
-7 bps yesterday. This
caused rates or fees to mostly move sideways for the day.
The rates experienced moderate volatility yesterday.
Wholesale Inventories: The Preliminary March reading dropped by -1.0% vs. est. of -0.1%.
Manufacturing: The April Richmond Fed manufacturing index dropped to -53 reading, the market was expecting -6.
Trade Balance: The March Goods Trade Balance was $-64.22B vs. est. of $-62.67B.
The Fed: The Fed starts two days of FOMC meetings, which will culminate with Wednesday's FOMC policy statement.
Treasury Dump: We have our 7-year note auction at 1:00 am ET, generally not a factor in pricing.
Housing: February YOY 20 city metro Case Shiller Home Price Index rose by 3.5% vs. est. of 3.3%.
Consumer Confidence: The April reading slumped to 86.9 which was close to market expectations of 90, but a pullback from March's level of 120.
Central Bank: The Swedish Central Bank keeps its key rate unchanged but says they are ready to cut if necessary.
Coronavirus: Here are the headlines that are getting the attention of bond traders this morning.
The economic data today was, as expected, very soft. As a result, we see rates move slightly lower so far today. We're not looking for rates to make a significant move today ahead of the Fed policy statement due out tomorrow.
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: 240340
Progressive Mortgage
5567 Reseda Blvd #323, Tarzana CA
Company NMLS: 1882585
Office: 818-717-7172
Cell: 323-864-7001
NMLS: 240340
Cell: 323-864-7001