Mortgage Rate Report 05-26-15

Posted by on May 26, 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: Neutral

Rates are trending a better this morning.  Last week the MBS market worsened by -47 bps.  This was probably enough to affect rates or  fees.  The market was extremely volatile last week.

Today’s Rate Forecast: Neutral

The MBS market worsened some last week, but it was a wild ride. This week will continue the volatility with wide trading ranges for MBSs and Treasuries. The biggest event of last week was Wednesday’s release of the minutes from the last Fed meeting. They didn’t really give us anything new to sink our teeth into. While there might be a few things that they included in the minutes…none of it was new because the bond market already knew it and we have had a plethora of “talking feds” over the past month and they have all spelled out their own opinions.  Bottom line is that we’re not expecting much out of the Fed in the short term to push mortgage rates higher.  This week there are a lot of economic reports due out.  The one that has the potential to really move the market is 1st Quarter GDP. This originally was printed at +0.2% but the market is expecting a downward revision in the 0.0% to -0.7% range. Just how far this number is revised will have an impact on pricing and rates.  We’ll be keeping a close eye on it.

Today’s Potential Rate Volatility: High

According to Sigma Research the risk for volatility is high today and this week.  This is a shortened week with a lot of economic news.  It could be a wild ride for mortgage rates with Friday being the most likely volatile day with the announcement of the 1st Quarter GDP.

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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