Weekly Mortgage Rate Update (July 20th, 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: Neutral

Sigma Research said that rates are trending a little worse this morning.  Last week the MBS market improved by +22 bps.  This may’ve been enough to affect rates or fees. The market had moderate volatility.  Mortgage rates are bumping up a little bit this morning.

This Week’s Rate Forecast: Neutral

According to Sigma Research  says the bond and mortgage markets under pressure to start the week. After last week’s Greek parliament voted to accept the creditors’ demands to increase austerity on Wednesday, Greece and the months-long daily dose of news quiet has descended on the region. Today Greek banks are now open after Greece agreed to pay €6.8B to creditors; money owed to the European Central Bank, the International Monetary Fund and Greece’s central bank. Banks can now replace the daily cash withdrawal limit of 60 euros with a weekly limit of 420 euros, though transfers abroad from Greek accounts remain banned. This is a relatively slow week for market moving data. As a result we’re hoping for a relatively quite market.

This Week’s Potential Volatility: Average

According to Sigma Research the risk for volatility is average today and this week.  As stated above, there’s not a lot of market data being released that to worry about so the market will turn its focus to China and Greece.

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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