The July Richmond Fed Manufacturing Index reported lower than expected

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Published Date 7/23/2024

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 today. The MBS market improved by +4 bps yesterday. This was not enough to decrease mortgage rates or fees. The market experienced moderate volatility yesterday.

Today's Rate Forecast: Neutral

Housing: June Existing Home Sales will hit at 10 am ET The market is expecting an annualized pace of 4.000M units. It was reported at 3.89M units.

Manufacturing: The July Richmond Fed Manufacturing Index will also hit at 10 am and is expected to continue to show contraction with a -7 reading. It was reported at -17.

Treasury Auction: Today we kick off three days of dumping our debt into the marketplace with $69B of 2 year notes.

Today's Potential Rate Volatility: Low

This morning markets are getting a small boost. Volatility has started low.

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.

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