Household Net Worth Creeps to Record High:

U.S. household net worth nudged up 2 percent to a record high $81.8 trillion in the first quarter as the stock market continued its upward climb and property values rose, according to data from the Federal Reserve.

The S&P 500 rose 1.4 percent in the first quarter as the Fed continued with a highly accommodative monetary policy for a recovering U.S. economy. For the year to date, the S&P is up 5 percent, and hit a new intraday record high last week.

How consumers feel about their financial net worth has a direct impact on consumer spending and demand for homeownership, so this is more good news for the housing market.

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.  It’s 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 last week worsened slightly, as reported by Sigma Research. The overall worsening for last week for the MBS market was -56 basis points, which may mean a slight worsening in mortgage pricing. 

This Week's Rate Forecast: Neutral

According to Sigma Research, the rate markets are still affected and supported by overseas issues in Europe, China, and the Ukraine. However Sigma Researchdoesn't expect mortgage pricing to improve much from here.

This Week's Potential Volatility: High

Sigma Research says there will not be lots of economic data this week that is likely to have a great effect on the bond market, but that overseas issues will play a strong role. Volatility will be high as the markets and mortgage pricing are likely to move on any large deviations of expected economic news. Remember, 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.