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Home › News › Weekly Mortgage Rate Update (January 9th, 2017) Hagerstown, MD Real Estate

Weekly Mortgage Rate Update (January 9th, 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: Neutral

Mortgage rates are trending very slightly better this morning.  Last week the MBS market improved by +12 bps.  This was not enough to improve mortgage rates or fees.  Mortgage rates experienced high volatility yesterday.

This Week's Rate Forecast: Neutral

Three Things: These are the three biggest events of the week that have the greatest ability to impact mortgage rates. 1) The Talking Fed, 2) Across the Pond and 3) Domestic Flavor.

1) Fed: We get a of commentary from the Fed this week with the spot light on Janet Yellen: .

  • 01/09 Eric Rosengren and Dennis Lockhart.
  • 01/12 Charles Evans, Pat Harker, Dennis Lockhart, James Bullard and Janet Yellen. .

2) Across the Pond: We have large amount of very important data out of China (world’s number 2 economy) with Imports/Exports, PPI and CPI. Germany (world’s number 4 economy and the driving force for the Eurozone) will have a very important 10Y bund auction, Industrial Production, Real GDP and Wholesale Trade. The Brexit will continue to gain a lot of attention as Prime Minister May makes comments on the timing and desired type of post-EU existence for Great Brittan. .

3) Domestic: The biggest report of the week will be Friday’s Retail Sales data. We already know from last week’s Total Vehicle Sales data that Auto Sales will be strong, so we will focus on the Retail Sales Ex-Auto. We also get some inflationary data with PPI, more jobs data as well with the LMCI, JOLTS and Weekly Claims.

This Week's Potential Volatility: Average

While mortgage rates have were relatively volatile last week we’re starting to build a nice little channel for mortgage rates. We don’t expect mortgage rates to move significantly higher or lower this week. Of course any unforeseen event can change all of that.

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