|
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. Tracking these securities real-time is critical. For more information about the rate market, contact me directly. I’m among few mortgage professionals who have access to live trading screens during market hours.
Rates Currently Trending:
Neutral
Yesterday's MBS market was worse by -2 bps. According to Sigma Research
there was low volatility. Yesterday's was likely not enough
to substantially affect rates or fees. So far today the MBS market
trading higher (better rates).
Today's Rate Forecast:
Neutral
Sigma Research says that the only data today, March durable goods orders, was expected up 0.5% and ex transportation orders up 0.3%. Orders increased 4.0%, excluding transportation orders down 0.2%.
On the news the MBS market improved helping to pull back some of the
losses we've experienced over the last few days.
Today's Potential Rate Volatility:
Average
According to Sigma Research
the risk for volatility for today is average to high. We continue
to trade in a very tight range and don't expect anything to
significantly throughout the day.
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.
|
