Weekly Mortgage Rate Update (June 29th, 2015) Hagerstown, MD Real Estate

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: Lower

Sigma Research said that said rates are trending a little better this morning on the Greece news.  Last week the MBS market worsened by -121 bps.  This was enough to worsen rates or  fees.  The market was once again very volatile last week.

This Week’s Rate Forecast: Neutral

According to Sigma Research of a Greek referendum vote on whether to take creditors’ proposals or leave the EU. George Sapounas, a member of the ruling Syriza party said he couldn’t be happier with the government’s decision to call a referendum – even if it means short-term economic meltdown, and a possible exit from the euro. Europe’s stock markets under pressure, our stock market opening down and a push into US treasuries. Tomorrow Greece will default on its payment to the IMF. Greece has destabilized Europe and global markets for months, nothing that happens there should be a surprise either way Greece may go. Concerns are mounting that the debt crisis will spread to Portugal and Spain.  Mortgage rates are trending better on the Greece news so far this morning.  However, we’re still in a fairly tight trend and we haven’t broken out, leaving little room for mortgage rate improvement.  However, that could change as this is a very volatile situation.

This Week’s Potential Volatility: High

According to Sigma Research the risk for volatility is high today and this week. Greece and the affects of defaulting will continue to be in the headlines and will affect mortgage rates.  The world markets will start to turn its attention to Spain and Portugal with concern that they may follow Greece’s lead and leave the EU.

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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