Published Date 12/26/2023
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.
Mortgage rates are getting some minor support today. The MBS market changed by +0 bps last week. This was not enough to change mortgage rates or fees. The market experienced low volatility last week.
Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) Geopolitical, 2) Manufacturing and 3) Treasury Auction.
1) Geopolitical: Concern over the U.S. retaliatory strikes in Iraq and continued concern over the Red Sea, Gaza, Russia and more will be on top of minds of traders this week with limited economic news to drive markets.
2) Manufacturing: We get the bellwether Chicago PMI this week along with the Richmond Fed Manufacturing Index.
3) Treasury Auction: We have one last batch of debt to dump into the marketplace before the year ends. Demand for our debt will be a large factor.
12/26 2 year note
12/27 5 year note
12/28 7 year note
This morning markets are getting some minor support on geopolitical concerns. Volatility has started low and is likely to stay that way baring major disasters.
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: TBWSAll 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.
NMLS: 51519
Millenium Home Mortgage LLC
1719 Route 10 East, Suite 206, Parsippany NJ
Company NMLS: 51519
Office: 973-402-9112
Email: connie@mhmlender.com
NMLS: 51519
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