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DEVIN REPORT-Weekly Update on the Mortgage Markets

Posted by Chris Devin April 22, 2014 11:57 AM

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How Rates Move:

Lenders base their rates largely on the price movement of Mortgage-Backed Securities (MBS) which are traded in real time, all day, on the bond market. This means mortgage rates and/or fees (mortgage pricing) often times move throughout the day, being affected by a variety of economic or political events. Itís important to know that 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 am among very few mortgage professionals who have access to live trading screens during market hours.
Rates Currently Trending: Neutral
Rates have been stable, as reported by Sigma Research. The overall improvement for last week for the MBS market was -66 basis points, which may mean a slight worsening in mortgage pricing.

This Week's Rate Forecast: Neutral
According to Sigma Research, mortgage pricing is likely to be stable this week. There are few key economic releases this week, and the Ukrainian situation should continue to be monitored.

This Week's Potential Volatility: Fairly High
Sigma Research says this week the MBS market could see volatility due to movement in the equity (stock) markets, as well as overseas concerns. There are always unforeseen events that may arise which are not expected. We'll be keeping an eye on all breaking news related to mortgage pricing.

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.

If you are looking to purchase or refinance your home and would like to discuss your options, you can reach out to Chris directly at 781.616.1350 or by clicking here.

This blog is not written or edited by Boston.com or the Boston Globe.
The author is solely responsible for the content.

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