{"id":8824,"date":"2020-01-21T17:45:29","date_gmt":"2020-01-21T17:45:29","guid":{"rendered":"https:\/\/intelliloan.com\/blog\/?p=8824"},"modified":"2024-10-16T19:01:41","modified_gmt":"2024-10-16T19:01:41","slug":"three-things-that-can-move-rates-this-week","status":"publish","type":"post","link":"https:\/\/intelliloan.com\/insights\/three-things-that-can-move-rates-this-week\/","title":{"rendered":"Three Things That Can Move Rates This Week"},"content":{"rendered":"<h3>THIS WEEK&#8217;S MORTGAGE RATE SUMMARY<\/h3>\n<h4>HOW RATES MOVE:<\/h4>\n<p>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<h4>RATES CURRENTLY TRENDING:\u00a0NEUTRAL<\/h4>\n<p>Mortgage rates are trending sideways on low volatility this morning.\u00a0\u00a0<strong>Last week the MBS market lost -5 bps.<\/strong>\u00a0 This caused rates to move sideways on low volatility.<\/p>\n<h4>THIS WEEK&#8217;S RATE FORECAST:\u00a0NEUTRAL<\/h4>\n<p><strong>Three Things:<\/strong>\u00a0These are the three areas that have the greatest ability to move rates this week. 1) Central Banks, 2) Geopolitical, and 3) Davos.<\/p>\n<p><strong>1) Central Banks:\u00a0<\/strong>We will get key interest rate decisions and policy statements from the world&#8217;s largest economies this week:<\/p>\n<ul>\n<li>01\/21 People&#8217;s Bank of China<\/li>\n<li>01\/22 Bank of Japan<\/li>\n<li>01\/23 Bank of Canada<\/li>\n<li>01\/24 European Central Bank<\/li>\n<\/ul>\n<p><strong>2) Geopolitical:\u00a0<\/strong>There are a lot of big stories that will grab the attention of bond traders. In the US, it&#8217;s the Senate Impeachment process. In Europe, we have the Brexit deadline in only 10 days. Of course, in China, we have a zombie-plague (Coronavirus) outbreak, and there is plenty of uncertainty to go around with Iran, Iraq, and Syria.<\/p>\n<p><strong>3) Davos:\u00a0<\/strong>The World Economic Forum has kicked off in Davos, Sweden, and we will hear from major leaders, bankers, central bankers, and economists.<\/p>\n<h4>THIS WEEK&#8217;S POTENTIAL VOLATILITY:\u00a0LOW<\/h4>\n<p>We have a shortened week this week and a light week for economic releases. However, we do have a lot of political and geopolitical activity that can move rates this week. We&#8217;ll also be looking at Central Bank action from around the globe.<\/p>\n<h4>BOTTOM LINE:<\/h4>\n<p>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<p><small>Source: TBWS<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>THIS WEEK&#8217;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 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":8966,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-8824","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\/8824","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=8824"}],"version-history":[{"count":1,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8824\/revisions"}],"predecessor-version":[{"id":9018,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8824\/revisions\/9018"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media\/8966"}],"wp:attachment":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media?parent=8824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/categories?post=8824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/tags?post=8824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}