October JOLTS data weaker than expected

___

Published Date 12/5/2023

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.

Rates Currently Trending: Neutral

Mortgage rates are getting a small boost. The MBS market worsened by -25 bps yesterday. This may have been enough to increase mortgage rates or fees. The market experienced high volatility yesterday.

Today's Rate Forecast: Neutral

Jobs: The October Job Openings and Labor Turnover Survey (JOLTS) was lighter than expectations (8.733M versus estimates of 9.300M) but still remained at an extremely elevated level (anything above 7M).

Services: The November ISM Non Manufacturing (Services) PMI beat expectations, 52.7 versus estimates of 52.0. Prices Paid remained high at 58.3 but were lower than the previous month's 58.6. The Employment Index gained some ground rising from 50.2 to 50.7.

Today's Potential Rate Volatility: High

This morning markets have a slight positive lean. Volatility has started high as markets digest labor data.

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.

Source: TBWS

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.

Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker - NY Department of Financial Services; Licensed Mortgage Banker - CT Department of Banking; Licensed Mortgage Banker - PA Department of Banking, Licensed Mortgage Lender – FL Office of Financial Regulation

All rates, fees and programs are subject to change without notice.