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Home › News › Weekly Mortgage Rate Update (June 15th, 2015) Hagerstown, MD Real Estate

Weekly Mortgage Rate Update (June 15th, 2015) 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

Sigma Research said that said rates are trending a little better this morning.  Last week the MBS market worsened by -8 bps.  This was probably not enough to affect rates or  fees.  While the change in the MBS market was only down 8 bps it was a wild ride.  The overall direction of rates continues to be higher.

This Week’s Rate Forecast: Higher

According to  Sigma Research the talks between Greece and the negotiation team in Brussels broke down over the weekend. Negotiators took a look at the “new” proposals from Greece and rapidly dispatched it into the trash. European officials calling the proposal “vague and repetitive”. Greece apparently placing all bets on appealing to Europe’s leaders to get concessions when leaders meet on June 25th. Greece has a big payment due on June 30th, as we thought there won’t be any deal (if at all) until the 11th hour. Tomorrow the FOMC meeting but it won’t be until Wednesday at 2:00 and then 2:30 press conference of Janet Yellen that we have anything to debate. Most believe the Fed will increase the Federal Funds rate at the Sept meeting; Yellen will remind that the Fed is data dependent on when it will move.  Until we see something that pushes the market the other direction in a meaningful way, we will continue to look for rates to drift upward.

This Week’s Potential Volatility: High

According to Sigma Research the risk for volatility is high today and this week.  We feel like a broken record as it pertains to volatility, but in today’s world we have volatile days with zero new information as the market continues to try to find its footing.

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.