Mortgage Rate Insider 02-09-15

Posted by on Feb 9, 2015 in News | No Comments
Rates At a Glance
Mortgage Rates
Currently Trending
Today’s Mortgage
Rate Forecast
Today’s Potential
Rate Volatility
(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

Sigma Research said that rates are trending a little worse this morning.  Last week the MBS market lost -130 BPS.   This was enough to worsen mortgage rates.  Today we’re starting off slightly better, but we have a lot of ground to make up to get pricing to the beginning of last week.

Today’s Rate Forecast: Neutral

According to  Sigma Research the MBS market has turned bearish (negative for rates) after last week’s drop.  The employment numbers Friday was the big reason for the change in outlook.  A lot of numbers were thrown at us, but the big market mover was the average hourly earnings.  It was expected that average hourly earnings would increase by about .2% after the decline in Dec.  However, it was up by .5% helping to push aside deflation fears and showing the US economy still has a little heat.

Today’s Potential Rate Volatility: High

According to Sigma Research the risk for volatility is high today and this week.   The oil market continues to be a market mover and of course the Greek debt crisis can and will cause volatility in the MBS and stock 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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