Mortgage Rates at a Glance 01-29-15

Posted by on Jan 29, 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, the bond markets opened slightly weaker this morning after yesterday’s strong price gains. MBS prices were up +46 bps yesterday, leading to lower rates today. The technical outlook is still bullish (lower rates).

Today’s Rate Forecast: Lower

According to Sigma Research, interest rates fell yesterday after the FOMC’s comments in their policy statement. According to the statement, there are no concerns about inflation, partly because of declining oil prices. Mortgage bonds are down slightly at the open, which is to be expected after yesterday’s gains. It was the currently bearish US stock market and declining inflation readings here and globally that drove interest rates lower. Expect better mortgage rates today because of yesterday’s strong rally.

Today’s Potential Rate Volatility: High

According to Sigma Research the risk for volatility is high today. The volatility in the markets is driven by wide swings in the economic reports. Weekly jobless claims were expected to be down 7k to 300k, as reported claims declined 43k to 265k, the lowest level of claims since April 2000.

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.

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