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Home › News › Weekly Mortgage Rate Update (June 8th, 2015) Hagerstown, MD Real Estate

Weekly Mortgage Rate Update (June 8th, 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 slightly better this morning.  Last week the MBS market worsened by -161 bps.  This was enough to affect rates and  fees.  The market was extremely volatile last week.

This Week's Rate Forecast: Higher

According to  Sigma Research last week was dreadful.  Once the support levels broke on the MBSs there was massive selling, pushing mortgage rates higher.  As we’ve been saying, the market is fretting that the Fed will begin increasing rates this year.  The economic data is starting to point to the Fed moving rates up in September, namely the employment numbers last week which pointed to some wage inflation. This week economic data occurs later in the week with May Retail Sales, May PPI, April Business Inventories, and Preliminary June University of Michigan Consumer Sentiment Index.  Today we’re not expecting much from the market, maybe a slight improvement from Friday, but nothing that will substantially improve rates or fees.  For the week, we’ll need something surprising to push mortgage rates significantly lower as the trend continues to be for higher rates.

This Week's Potential Volatility: High

According to Sigma Research the risk for volatility is high today and this week.  Later in the week we’ll get some economic numbers that will push volatility higher. However, it’s hard to imagine the market can get any crazier than last week

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.