Crazy Times Continue: Mortgage Rates Trail Lower

A lot has happened this week for mortgage rates, the economy and jobs.  Below I have summarized the week hoping to give you a glimpse of what is happening in the market and how it all affects your ability to get a low-interest rate.    If you are wondering whether this is a good time or not to refinance or buy a house, its a simple solution.  Pick up the phone and speak to our team and we will run numbers and analyze what is best for your at this time…  Simple… Know your numbers!

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.
Mortgage rates are moving sideways so far today.  The MBS market improved, worsened, then improved for a net gain of by 7 bps yesterday. It gained a little and then went flat.
Jobs: July Challenger Job Cuts showed that announced corporate layoffs increased to 262,649 in July vs. 170,219 in June. Initial Weekly Jobless Claims were lower than expected but still saw another 1M new filers for the week with a 1.186M vs. est. of 1.415M. Those classified as temporarily laid off decreased, but those classified as permanently losing their job increased. Continuing Claims were 16.107M vs. est. of 16.720M.
Central Bank: The Bank of England kept its key interest rate at 0.1%. BofE Gov said that negative interest rates are “in the toolbox,” but they are not ready to use it until after the COVID pandemic passes.
Stimulus: Deal or No Deal? Congress left town for the August break. The two sides failed to move and meet at the middle as President Trump has threatened to go it alone with some Executive Orders to keep the $600 weekly “helicopter” money alive but not for a full package.
Coronavirus: Then you have this… Yeah… I know… Yeah….