Volatile Mortgage Rate Market Today

Posted by on Mar 6, 2015 in News, Uncategorized | No Comments


Rates At a Glance
Mortgage Rates
Currently Trending
Today’s Mortgage
Rate Forecast
Today’s Potential
Rate Volatility
Higher 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: Higher

Yesterday’s MBS market was worse  by -4 bps. According to Sigma Research there was moderate volatility.  Yesterday’s move was more than likely not enough to affect interest rates or fees.  What we suggested might happen is happening.  The MBS market is down significantly this morning after the employment numbers were announced.  This is negative for mortgage rates and could result in higher rates and fees.

Today’s Rate Forecast: Higher

Sigma Research says that employment numbers came in better than expected.  The consensus estimate (if there is such a thing) was for job growth in the 230K to 240K range, as reported jobs increased 295K, private jobs also much stronger than expected, up 288K. The unemployment rate was thought to be 5.6% from 5.7% in Jan, unemployment fell to 5.5%.  These numbers, along with a few others, were better than expected which is causing mortgage rates to rise this morning.  As we’ve been saying, this was big day to determine medium term direction of mortgage rates and thus far it’s negative for mortgage rates.

Today’s Potential Rate Volatility: High

According to Sigma Research the risk for volatility for today is high.  The volatility we were expecting is happening and we expect it for the rest of the day.

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.Ca. BRE#01855372 NMLS MLO#278103 Company NMLS#1279902

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