Published Date 3/14/2018
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 moving sideways so far today. The MBS market improved by +7 bps yesterday. This wasn't enough to improve mortgage rates or fees. The rates experienced low volatility yesterday.
Housing: Weekly Mortgage Applications rose by 0.9%, led by a big surge of 3.0% in purchase applications. Refinance applications fell by -2.0%.
Inflation: Just like Tuesday's CPI data, cross the board the Producer Price Data matched market expectations with the closely watched YOY Headline reading rising to 2.8% in February from 2.7% in Jan. The Core PPI YOY rose from 2.2% to 2.5%.
China: Retail Sales YOY hit 9.7% vs est of 9.8%, Industrial Production 7.2% vs est of 6.1%.
Germany: CPI YOY 1.4% vs est of 1.4%.
Today's economic numbers are inline with expectations and won't likely move the needle. Mortgage rates will likely be flat with low volatility again today. A geopolitical event is the only likely thing that can move rates out of its tight range today.
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.
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Office: 208-640-5626
Cell: 208-640-5626
License: NMLS 87705
Cell: 208-640-5626