Published Date 2/14/2022
Published Date 2/14/2022
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 higher today. The MBS market worsened by -84 bps last week. This was enough to increase mortgage rates or fees. The market experienced high volatility last week.
Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) Russia, 2) The Fed and 3) Inflation.
1) Russia: We have large swings in long bond yields as the speculation of escalation or de-escalation with Russia/Ukraine changes. This in turn drives foreign investment into our notes and bonds as a safe-haven.
2) The Fed: We will get the Minutes from their last FOMC meeting and hear from several voting and nonvoting Fed members this week. The MBS market is the most concerned about QT, the reduction of their balance sheet - timing/scale/scope.
3) Inflation: We got a monster CPI report last week. This week, we get the front-end of that equation which portends the next round of CPI data with this week's PPI data. We also get Import/Export Prices.
This morning bond markets are selling off as things currently look stable geopolitically. Volatility is high as markets watch the situation abroad and look to PPI 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: 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.
THIS IS AN ADVERTISEMENT. This is not a commitment to lend. Offer of credit subject to credit approval. A and N Mortgage Services, Inc. 1945 N. Elston Ave. Chicago, IL 60642 p: 773.305.LOAN (5626) ANmtg.com NMLS No. 19291 For licensing information, go to: https://www.anmtg.com/licensing/ (Nationwide Mortgage Licensing System www.nmlsconsumeraccess.org)
NMLS: 19291
A and N Mortgage Services
1945 N. Elston, Chicago IL 60642
Company NMLS: 19291
Office: 773-305-5626
Cell: 312-961-4380
Email: neenav@anmtg.com
NMLS: 19291
Cell: 312-961-4380
5/28/2024
In some instances, buying a home in today’s market amounts to a lot more than ma... view more
5/24/2024
Overnight the 10 year note yield edged up to 4.50% +2 bps. At 8:30 am ET April d... view more
5/23/2024
When the going gets tough, homebuilders get going. That might be the new mantra ... view more
5/23/2024
Initial Weekly Jobless Claims were lower than expected, Weekly Claims were 215K ... view more
5/22/2024
Spring has officially sprung. So aside from washing down the patio and dusting o... view more
5/22/2024
The 10 year note began up 4 bps from yesterday’s decline of 3 bps. MBS prices ye... view more
5/21/2024
Stores do it and you don’t even realize it. You walk past a chic clothing establ... view more
5/20/2024
These are the three areas that have the greatest ability to impact rates this we... view more
5/20/2024
This week gets underway with a calendar full of Fed officials speaking, however ... view more
5/17/2024
After a week full of key data, today nothing but Leading Economic Indicators whi... view more