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 moving sideways so far today.\u00a0\u00a0The MBS market worsened by -8 bps yesterday.<\/strong>\u00a0This caused rates or fees to mostly move sideways for the day. The rates experienced moderate volatility yesterday.<\/p>\n Small Business Optimism:<\/strong>\u00a0The December NFIB Index was positive with a reading above 100 (102.7), but it was a smidge lower than market expectations of 103.1<\/p>\n Inflation<\/strong>: The December Consumer Price Index (CPI) YOY headline reading matched market expectations with a gain of 2.3%, which was an increase over November’s YOY pace of 2.1%. The Core (Ex-food and energy) YOY reading also matched expectations of 2.3%.<\/p>\n The Fed<\/strong>: Today, we’ll hear from John Williams and Esther George.<\/p>\n Trade War:\u00a0<\/strong>The U.S. Treasury Department has removed China from the status of currency manipulators in preparation for the Phase 1 deal.<\/p>\n Rates are moving sideways today on low volatility. Today’s CPI report was in line with estimates, and the trade deal\/signing is moving along as expected. Look for rates to continue in the tight channel on low to moderate volatility.<\/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":" 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 […]<\/p>\n","protected":false},"author":2,"featured_media":8970,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-8812","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\/8812","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=8812"}],"version-history":[{"count":1,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8812\/revisions"}],"predecessor-version":[{"id":9013,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8812\/revisions\/9013"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media\/8970"}],"wp:attachment":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media?parent=8812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/categories?post=8812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/tags?post=8812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}TODAY’S RATE FORECAST:\u00a0NEUTRAL<\/h4>\n
TODAY’S POTENTIAL RATE VOLATILITY:\u00a0AVERAGE<\/h4>\n
BOTTOM LINE:<\/h4>\n