Mortgage Rate Report-Lock Em Up

Posted by on May 27, 2015 in News | No Comments
Rates At a Glance
Mortgage Rates
Currently Trending
Today’s Mortgage
Rate Forecast
Today’s Potential
Rate Volatility
Neutral Neutral 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: Neutral

Yesterday’s MBS market was better  by +36 bps.  According to Sigma Researchthere was  high volatility.  Yesterday’s movement may have been enough to improve rates or fees.  So far today the MBS market is trading negative (worse rates).

Today’s Rate Forecast: Neutral

Sigma Research says that nothing is happening domestically today to move the market significantly.  As a result, the market is going to turn it’s focus overseas. Greece is out today saying it will meet the deadline on June 5th to make the next payment to the IMF because it will have reached a deal with its creditors by then. The past two sessions Europe’s stock markets were under pressure as the fast approaching June 5th for the payment didn’t look promising, today after Greek officials commented Europe’s equity markets doing better. Greece will muddle along until late July before it either has a workable and agreeable long plan or has to leave the EU. In the meantime each event that unfolds keeps markets jumpy. US bonds benefited yesterday on never-ending fears that Greece might not meet the June 5th payment.

Today’s Potential Rate Volatility: High

According to Sigma Research the risk for volatility is still high today.  While there’s not a lot of news domestically do out to push the market significantly, we do have the Greece deadline fast approaching and a high likelihood of significant volatility as news is released.

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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