Daily Mortgage Rate Update 02-13-15

Posted by on Feb 13, 2015 in News | No Comments
Rates At a Glance
Mortgage Rates
Currently Trending
Today’s Mortgage
Rate Forecast
Today’s Potential
Rate Volatility
Higher Higher High
(by Sigma Research)
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.  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: Higher

Yesterday’s MBS market was better  by +29 bps. According to Sigma Research there was moderate volatility.  Yesterday’s move may have been enough to improve rates, but this morning some of those gains might be wiped away.  This morning the MBS market is slightly worse.

Today’s Rate Forecast: Higher

Sigma Research says that the economic news out of Europe was better this morning. Germany leading the way for better GDP growth; in Q4 European Union’s statistics agency said Friday the combined gross domestic product of the 18 countries that then shared the euro was 0.3% higher in the fourth quarter than in the third; forecasts called for 0.2% growth.  This is slightly positive news for the EU’s overall economy which could put pressure on the US mortgage rates. Good news for new home purchases; the Builder Application Survey showed that mortgage applications for new homes climbed 29% in January relative to December, not accounting for seasonal adjustments.   This of course is good news for housing, but could also put a little pressure on interest rates as it is positive economic news.

Today’s Potential Rate Volatility: High

According to Sigma Research the risk for volatility remains high, but does seem to be calming a bit.  While the volatility has tampered down a bit over the last few days, we’re a little concerned about the thin trading that will be occurring today ahead of a holiday weekend.  This can cause some major swings in the market.

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.

About Jesse Gonzalez
Jesse is member of the National Ethics Association, a member of the National Association of Realtors, certified with the California Association of Realtors as a Seniors Real Estate Specialist, and Jesse is also proud to be certified as a Military Housing Specialist with USA Cares.
About This Report And Disclosure Information
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.

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