{"id":8917,"date":"2020-03-12T17:03:59","date_gmt":"2020-03-12T17:03:59","guid":{"rendered":"https:\/\/intelliloan.com\/blog\/?p=8917"},"modified":"2024-10-16T19:16:55","modified_gmt":"2024-10-16T19:16:55","slug":"rate-market-volatility-continues","status":"publish","type":"post","link":"https:\/\/intelliloan.com\/insights\/rate-market-volatility-continues\/","title":{"rendered":"Rate Market Volatility Continues"},"content":{"rendered":"<h3>Today&#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: Higher<\/h4>\n<p>Mortgage rates are moving higher so far today.\u00a0 <strong> The MBS market worsened by -62 bps yesterday.<\/strong> This caused rates or fees to move higher for the day. The rate markets experienced extreme volatility yesterday.<\/p>\n<h4>Today&#8217;s Rate Forecast: Higher<\/h4>\n<p><strong>Inflation<\/strong>: The February Headline Producer Price Index (PPI) YOY increased by 1.3% vs. est. of 1.8%. The Core PPI (ex-food and energy) YOY increased by 1.4% vs. est. of 1.7%.<\/p>\n<p><strong>Jobs<\/strong>: Initial Weekly Jobless Claims were lower than expected (211K vs. est. of 218K), the more closely watched 4-week moving average remained very low at 214K.<\/p>\n<p>Treasury Dump: We have our 30 year Treasury Bond auction at 1:00 pm ET.<\/p>\n<p><strong>Central Bank: <\/strong>The European Central Bank (ECB) kept its main interest rate at 0.0% and its deposit rate at -0.5% but announced more liquidity (asset purchases) to its schedule.<\/p>\n<p><strong>Coronavirus<\/strong>: The following are the most recent headlines that are grabbing the attention of bond traders.<\/p>\n<ul>\n<li>President Trump announced that travel from Europe will be cut off. However, people from Europe may continue to enter our county, unchecked, until Friday at midnight.<\/li>\n<li>The NCAA has announced that fans\/spectators are not allowed into the arenas for the NCAA Basketball tournaments.<\/li>\n<li>The NBA canceled a game last night and then went ahead and suspended ALL games until further notice.<\/li>\n<li>Actor Tom Hanks and his wife have confirmed that they contracted the virus while in Australia.<\/li>\n<li>Spain\u2019s entire cabinet is being tested for the coronavirus.<\/li>\n<li>Seattle became the largest city in the US to close its schools over the virus.<\/li>\n<li>Late-night talk shows in NY have canceled live audiences.<\/li>\n<li>Two NY Bronx schools close after student tests positive.<\/li>\n<li>The CME will close on Friday and will not reopen its floor. Instead, only electronic trading will be allowed.<\/li>\n<\/ul>\n<h4>Today&#8217;s Potential Rate Volatility: High<\/h4>\n<p>Market and rate volatility continues to be unprecedented. We&#8217;re looking for the same today. Rates are headed higher at the moment, but that can change very quickly with news about the coronavirus, Fed moves, or stimulus announcements.<\/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>Today&#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 of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":8977,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-8917","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\/8917","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=8917"}],"version-history":[{"count":1,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8917\/revisions"}],"predecessor-version":[{"id":9069,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8917\/revisions\/9069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media\/8977"}],"wp:attachment":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media?parent=8917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/categories?post=8917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/tags?post=8917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}