Daily Rate Insider 12-29-14
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.
According to Sigma Research, interest rate markets started a little better this morning. This means rates may be very slightly lower this morning.
According to Sigma Research, interest rate markets are starting out better this morning, with US stock indexes slightly lower prior to the 9:30 open. Greece is back in the headlines this morning after the Parliament failed to elect a new president. This means Greece will be forced into snap elections, renewing fears over the country’s financial problems. This has led to interest rates opening very slightly better this morning. Bond market forecasters are “sure” interest rates will increase, just as they were at the beginning of 2014. The 10 year note was trading at 3.00%. Now it is at 2.22%. In other words, the forecasters were far off the mark. The consensus is that the Fed will begin increasing its rates in the middle of the year. If it does, it will be the first rate increase in ten years.
According to Sigma Research the risk for volatility is high today. Trading volume will be very thin this week and the technical picture is slightly bearish. The bond market will close at 2:00 EST on Wednesday, reopen for a full day on Friday. The thin volume means that there is a likelihood of high volatility.
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.
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