Published Date 5/14/2020
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.
Mortgage rates are moving sideways so far today. The MBS market remained unchanged yesterday. This caused rates or fees to move sideways for the day. The rates experienced low volatility yesterday.
Jobs: Initial Weekly Jobless Claims were higher than expected (2.981M vs. est. of 2.500M). Continuing Jobless Claims rose from 22.377M to 22.833M. New filings have now reached 36.5M since the Covid-19 virus hit.
Genco Olive Oil: Import/Export Prices continue to free fall. Import Prices YOY were down -6.8% vs. est. of -6.2%. Export Prices YOY fell by -7.0% vs. est. of -5.1%.
The Fed: Today we hear from Neel Kashkari, Raphael Bostic, and Robert Kaplan.
Coronavirus: Here are this morning's headlines.
Once again today, we're looking for rates to move sideways on low to moderate volatility. The rate markets are trading in a very tight channel for the last two months. The economic data today was of no surprise. Short of something unexpected with the coronavirus, the rates will move sideways.
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