Rate Alert

Posted by on Apr 16, 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

Yesterday’s MBS market was better by +13 bps. According to Sigma Research there was moderate volatility. Yesterday’s move more than likely was not enough to affect rates or fees. So far today the MBS market trading lower (worse rates).

Today’s Rate Forecast: Neutral

Sigma Research says that March housing starts didn’t meet expectations of an increase of 13.75% after dropping 15.3% in Feb, but still a very solid number. In addition, February new home sales were the highest in seven years. Weekly jobless claims were thought to be about unchanged from the previous week. Claims increased 12K to 294K; still holding under 300K that traders see as a key level. Overall, this mornings numbers that came out this morning, if you roll them all together, we don’t see enough to move the market dramatically one way or the other. However, Greece defaulting on their debt or pulling out of the Euro is still weighing on the markets.

Today’s Potential Rate Volatility: Average

According to Sigma Research the risk for volatility for today is average today. We continue to trade in a very tight range and we don’t think any of the news that came out this morning should push the market dramatically one way or the other.

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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