Today’s Mortgage Rates : Real-Time MBS Pricing, January 2, 2013
Fiscal Cliff Deal
Politicians reached a fiscal cliff deal which will avoid most of the spending cuts and tax increases which were set to take place at the start of 2013. While much of the debate was simply postponed, the deal reduces the risk of slower economic growth which would have resulted from the expiring programs. This was good news for stocks and bad news for bonds.
ISM Manufacturing rose to 50.7, slightly above the consensus of 50.5. Construction Spending declined 0.3%, below the consensus for an increase of 0.5%. The detailed FOMC Minutes from the December 12 Fed meeting will be released at 2:00 et.
This chart shows the change in mortgage-backed securities (MBS) prices from today's market open at 8:00 AM ET and tracks how MBS prices have changed until the time of this post. The vertical-axis reflects the change in MBS pricing as measured in 32nds. Each 32nd is equal to 3.125 basis points.
Falling MBS prices result in higher mortgage rates. Rising MBS prices result in lower mortgage rates. MBS pricing provided by MBSQuoteline.