Daily Rate Analysis

Posted by on Jan 21, 2015 in News | No Comments
Rates At a Glance
Mortgage Rates
Currently Trending
Today’s Mortgage
Rate Forecast
Today’s Potential
Rate Volatility
Lower Lower 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: Lower

According to Sigma Research, President Obama’s State of the Union message generated no reaction in the markets, which opened essentially flat from yesterday’s close.

Today’s Rate Forecast: Lower

According to Sigma Research, the DJIA opened -96, mortgage bonds opened -3bp, which will cause rates to be unchanged from yesterday. The Greek elections coming up could determine he country’s future within the Eurozone. That country’s economy has shrunk 25% since its peak in mid-2008. This, along with the rest of the soft global economy, is a major component that supports low rates in the U.S. MBA says mortgage applications increased again–14.2% from one week earlier. This is not surprising, given the rapid drop in interest rates recently, which presents opportunities for homeowners to reduce their interest rates. Conventional refinances increased 21% from the previous week.

Today’s Potential Rate Volatility: High

According to Sigma Research the risk for volatility is high today, although the technical picture still looks good. Both 30 year MBS and 10 year Treasuries are technically overbought in the near term, which means the market could be ripe for a bit of a correction soon.

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
I am licensed as a mortgage loan originator, meaning I can assist you with financing needs with very competitive rates. Service is my number one goal. I look forward to working with you.
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.

Ca. BRE#01855372 NMLS MLO#278103 Company NMLS#1075218

Leave a Reply