Markets will be focused on Powell’s testimony to the senate today

___

Published Date 2/11/2025

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 moving sideways today. The MBS market changed by 0 bps yesterday. This was not enough to change mortgage rates or fees. The market experienced high volatility yesterday.

Today's Rate Forecast: Neutral

Glass half empty: The January NFIB Small Business Optimism Index dropped from 105.1 to 102.8. Still, any reading above 100 is positive but certainly at a lower level than December.

The Fed: We will hear from Hammack, Williams and Bowman today but the focus will be on Fed Chair Powell's testimony at 10 am ET in front of the Senate Banking Committee. We will get his prepared report in advance around 9:30 am.

Treasury Auction: We will kick off three days of dumping our debt into the marketplace with today's 3 year Treasury Note auction at 1 pm.

Today's Potential Rate Volatility: Low

This morning markets are seeing sideways trading. Volatility has started low but may increase depending on what Powell says.

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.