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.<\/p>\n
Mortgage rates are trending sideways this morning.\u00a0\u00a0Last week the MBS market improved by +18bps.<\/strong>\u00a0 This may’ve been enough to very slightly move rates lower.\u00a0 Rates continue to move mostly sideways on very low volatility.<\/p>\n Three Things:<\/strong>\u00a0These are the three areas that have the greatest ability to move rates this week. 1) Trade Wars, 2) Geopolitical, and 3) Manufacturing.<\/p>\n 1) Trade Wars:<\/strong>\u00a0In a rare confirmation directly out of China’s controlled news outlet, the South China Morning Post, reported that Chinese Vice Premier Liu He will visit Washington this week to sign the “phase one” trade deal with the U.S.<\/p>\n 2) Geopolitical:\u00a0<\/strong>The U.S. has launched strikes in Syria and Iraq over the weekend, and the markets will be watching to see if this remains a surgical and isolated campaign or turns into something bigger.<\/p>\n 3) Manufacturing:<\/strong>\u00a0We get two key reports this week with Monday’s Chicago PMI and Friday’s ISM Manufacturing report. Friday’s report will carry much more weight.<\/p>\n We’re not likely to see much rate volatility heading into the new year. We could see rate volatility spike toward the end of the week with the “phase one” trade deal signing and manufacturing numbers.<\/p>\n 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.<\/p>\n Source: TBWS<\/small><\/p>\n","protected":false},"excerpt":{"rendered":" THIS WEEK’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 […]<\/p>\n","protected":false},"author":2,"featured_media":96,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-8785","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-intelliloan"],"_links":{"self":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/comments?post=8785"}],"version-history":[{"count":1,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8785\/revisions"}],"predecessor-version":[{"id":9004,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8785\/revisions\/9004"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media\/96"}],"wp:attachment":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media?parent=8785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/categories?post=8785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/tags?post=8785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}THIS WEEK’S RATE FORECAST:\u00a0NEUTRAL<\/h4>\n
THIS WEEK’S POTENTIAL VOLATILITY:\u00a0LOW<\/h4>\n
BOTTOM LINE:<\/h4>\n