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 slightly higher so far today. The MBS market improved by +1 bps yesterday. This wasn’t enough to improve mortgage rates or fees. The rates experienced low volatility yesterday.TODAY’S RATE FORECAST: NEUTRAL
Housing: The January Case Shiller 20 city metro YOY Home Price Index rose by 3.1% vs. est. of 3.2%. Manufacturing: The March bell-weather Chicago PMI was much better than expected (47.8 vs. est. of 40.0) but still was in contraction territory with a sub-50 reading. Coronavirus: Here are this morning’s headlines that are getting the attention of bond traders.- US reports first daily jump of +500 deaths.
- US cases now above 165,000 and deaths above 3,175.
- Global Cases now above 800K.
- Spain’s death toll jumps by 850 in 24 hours.
- Dr. Fauci warns that the virus can return in the Fall.
- CDC weighs asking Americans to wear masks at all times outside of their homes.
