Rates most likely headed higher/Lock and Load those prices

Posted by on May 18, 2015 in News | No Comments
Rates At a Glance
Mortgage Rates
Currently Trending
Today’s Mortgage
Rate Forecast
Today’s Potential
Rate Volatility
Neutral HIGHER 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

Sigma Research said that said rates are trending a worse this morning.  Last week the MBS market worsened by -28 bps.  This was probably enough to affect rates or  fees.  The market was extremely volatile last week.

Today’s Rate Forecast: Higher

According to  Sigma Research 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. This week has three housing reports, and three reports on the manufacturing sector. It is a holiday week with Memorial Day next Monday, the bond and mortgage markets will close at 2:00 pm on Friday and all markets closed next Monday. Trade volume already razor thin will be even more so as the week progresses. Keeping everyone in their seats on Friday, Janet Yellen will speak on the economy at 1:00 pm Friday afternoon; she recently mentioned that a bubble may be forming in the US stock market, and was criticized for commenting directly on markets.

Today’s Potential Rate Volatility: High

According to Sigma Research the risk for volatility is high today and this week.  As stated above, the market is heading into a three day weekend and because of that the market is libel to be a little more volatile.  However, it’s hard to imagine the market can get any crazier than last week.

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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