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Weekly Mortgage Rate Update (June 27th, 2016) 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: Lower

Mortgage rates are trending lower this morning.  Last week the MBS market improved by +23bps.  This was enough to improve mortgage rates or  fees.  The MBS market was very volatile last week.

This Week’s Rate Forecast: Lower

Three Things: These are the top three events that long bond traders will be focusing on this week. 1) Brexit fallout, 2) Janet Yellen, and 3)Manufacturing Data.

Brexit fallout: The financial markets (currencies, bonds and stocks) will be in a state of “flux” for the near term with tremendous volatility. But that is not so much to do with figuring out the future economic growth of Great Brittan. Instead its due to very real fear of what the fate is of the EU. We now have reports of the following nations that want to have a referendum vote: France, Holland, Italy, Austria, Finland, Hungary, Portugal and Slovakia.

Yellen: Perfect timing as she will be speaking on a panel alongside the Bank of England Governor and the ECB President on Wednesday.

Manufacturing Data: This is back loaded towards the end of the week. Domestically, we have Chicago PMI and our ISM Manufacturing data. But we also get the Japanese Nikkei Manufacturing PMI and the Chinese Manufacturing and Non-Manufacturing (services PMI).

This Week’s Potential Volatility: High

Over the next few weeks the markets will continue to determine the ramifications of the Brexit vote. Adding to the volatility is the uncertainty of the EU and which countries will follow the UK.

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