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WEEKLY MORTGAGE RATE UPDATE ( November 27th 2017 ) HAGERSTOWN, MD REAL ESTATE

 
   

This Week's Mortgage Rate Summary

 
 Mortgage rates for November 27, 2017
 
 

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.  Tracking these securities real-time is critical.  For more information about the rate market, contact me directly.  I’m among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Neutral

Mortgage rates are trending sideways this morning.  Last week the MBS market improved by -+9bps.  This caused mortgage rates to remain essentially unchanged last week.

This Week's Rate Forecast: Neutral

Three Things: These are the three areas that have the greatest ability to impact mortgage rates this week: 1) Fed, 2) Domestic and 3 ) Tax Reform. 1) Fed: We will get their Beige Book that is prepared specifically for the December FOMC meeting, and we will hear from Janet Yellen and other key Fed members. Also, the Senate begins confirmation hearings on new Fed Chair Powell.

  • 11/27 - Neel Kashkari, William Dudley
  • 11/28 - William Dudley, Jerome Powell, Senate Confirmation hearings begin.
  • 11/29 - Fed's Beige Book, Janet Yellen, William Dudley, and John Williams
  • 11/30 - Robert Kaplan, Fed Balance Sheet
  • 12/01 - James Bullard and Robert Kaplan.

2) Domestic: We get a lot of big-name economic releases this week that have the gravitas to move pricing. Thursday's PCE reading will be the most important as it is the "official" inflation gauge of the Fed. The closer the YOY reading is to 2.0%, the worse it will be for mortgage rates. We also get our first revision to 3rd QTR GDP which is expected to move up from the previously released 3.0% to 3.2%. Rounding out the week are important manufacturing readings with the Chicago PMI and ISM Manufacturing. 3) Tax Reform: The Senate is back from vacation, and their tax bill is headed for a marathon debate this week with the aim to hold a floor vote as early as Thursday. Should it pass, Republican leaders will have to hammer out a compromise between different provisions in the House and Senate bills. President Trump will be making a final push as there are still several uncommitted Republican Senators. Treasury Auctions This Week:

  • 11/27 2 year Note, 5 year Note
  • 11/28 7 year Note.

This Week's Potential Volatility: High

Last week mortgage rates barely moved. This week could be a totally different story. We get several economic releases, noted above, that can move mortgage rates.

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.  

YOUR WEEKLY MORTGAGE RATE UPDATE IS PROVIDED BY:

Maximized Mortgage Solutions