Markets have a tepid response to March Small business Optimism Index

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Published Date 4/8/2025

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 worsened by -45 bps yesterday. This was enough to increase mortgage rates or fees. The market experienced high volatility yesterday.

Today's Rate Forecast: Neutral

Optimism: The March NFIB Small Business Optimism Index dropped from 100.7 all the way down to 97.4.

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

Tariffs: April 9th is fast approaching.

Today's Potential Rate Volatility: Neutral

This morning markets saw some rocky trading and are currently moving sideways. Volatility has started at moderate to high levels.

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

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