Mortgage rates flat after Fed meeting

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Published Date 9/21/2017

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 sideways so far today.  The MBS market worsened by -11 bps yesterday. This probably wasn't enough to worsen mortgage rates or fees.   The market experienced moderate to high volatility yesterday.

Today's Rate Forecast: Neutral

Location: The FHFA Home Price Index for July showed a MOM gain of 0.2% vs est of 0.4%. Yesterday's Existing Home Sales report is a more recent and larger data size.

Manufacturing: The Philly district of the Federal Reserve is rocking in September with a big surge in their Outlook Survey, climbing to 23.8 vs est of 17. New Orders were up 9 points and shipments out hit a new record of 37.8.

Japan (number 3 economy): The Bank of Japan left their key rates and policy unchanged by an 8-1 vote. What is interesting is the one negative vote came from a new member and he actually wanted MORE stimulus.

Eurozone: ECB President Mario Draghi will speak today.

Today's Potential Rate Volatility: Average

We don't expect mortgage rates to move too much today after the FOMC meeting yesterday and the Fed's decision to leave rates alone. The market got exactly what was expected, and there aren't any economic events that are likely to move mortgage rates today, short of an unexpected geopolitical event.

Bottom Line:

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.

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All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Daniel Harwood

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Cell: 816-462-5390

Email: daniel.t.harwood@gmail.com

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