June 9, 2014

Rates at a Glance
Mortgage Rates
Currently Trending
7 Day Mortgage
Rate Forecast
This Week's Potential Volatility
Neutral Neutral High

Realtor Report

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.


This Week's Rate Market Forecast

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.

About This Report and Forecasting: 

This information is shared with you by your Most Trusted Mortgage Loan Professional and is provided by RateAlert.com, the industry's Most Trusted source for mortgage interest rate market data, analysis, and alerts. For details about your specific home loan scenario, please contact your Mortgage Loan Professional. All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.




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