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Weekly Mortgage Rate Update (July 3rd, 2017) Hagerstown, MD Real Estate

Rates at a Glance

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: Higher

Mortgage rates are trending higher so far today.  Last week the MBS market worsened by -57.  This was enough to worsen mortgage rates or fees.  Mortgage rate volatility returned to the market.

This Week's Rate Forecast: Higher

Three Things: These three items have the greatest ability to impact mortgage rates this week. 1) Domestic, 2) Geopolitical and 3) Fed.

1) Domestic: Jobs, Jobs, Jobs. This week we get our Big Jobs Friday where we will see Non-Farm Payrolls and the Unemployment Rate. But more importantly, we will get the Average Hourly Wages data which has the greatest impact on mortgage rates. But through the week we also get ADP Private Payrolls, Challenger Job Cuts and Weekly Jobless Claims to round out a ton of jobs related data this week. Besides the Jobs data, the two biggest releases this week are ISM Manufacturing and ISM Services.

2) Geopolitical: We have an important meeting of the G20 starting on Friday but there are plenty of “pre-G20″ meetings going on. The markets will pay close attention to issues regarding North Korea, Russia and the Middle East. Brexit negotiations also will continue to get a lot of attention as well as speeches by key central bank figures across the pond.

3) Fed: We will get the Minutes from their last FOMC Meeting where they raised rates and gave guidance on at least one more rate hike this year as well as decreasing the pace of Treasuries and MBS purchases. We will get some more detailed background information from that meeting and it can have a big impact on mortgage rates this week. We also hear from James Bullard, John Williams and Jerome Powell this week.

This Week's Potential Volatility: High

Look for increased mortgage rate volatility again this week. Even with the shortened week, we have a lot of market moving data for the markets to digest.

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