Posted September 18, 2014

Mortgage Rates Today – Home Loan Rates & Trends

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September 18, 2014: Mortgage markets changing today's mortgage rates

 

Current Mortgage Rates Up-To-The-Minute

Today's mortgage rates are higher.

While investors were split about whether yesterday's Fed statement would include significant changes in language in one or two areas, these changes were not made. The bond purchase program will decrease by another $10 billion per month to $15 billion and will conclude next month, as expected. Fed officials kept the language saying that the fed funds rate will remain near zero for a "considerable time" after the end of the bond purchase program. Fed officials also continued to describe the labor market as containing "significant underutilization". What hurt MBS prices the most was that Fed officials forecasted a faster pace of fed funds rate hikes over the next couple of years.

Today's mixed economic data has had little net impact on MBS prices this morning. August Housing Starts declined 14% from July to an annual rate of 956K, below the consensus of 1040K. To keep it in perspective, the drop in August follows an increase of 23% (after revisions) in July to the highest level since November 2007. August Building Permits also fell short of expectations. Weekly Jobless Claims declined to 280K, below the consensus of 305K. Philly Fed declined to 22.5, slightly below the consensus of 23.0.

 

Despite how mortgage rates are doing today so far, note that rates can change at anytime, and often without advance notice. In a calm mortgage market, rates may change once or twice daily. In a volatile mortgage market, rates can change five times daily or more.

When mortgage rates change, mortgage lenders honor rates which have been previously "locked". Unlocked rates are rarely honored. To protect your long-term mortgage rate, lock a lender's price before rates start to move again.

Click to compare today's live rates.

About Today's Mortgage Rates Analysis

Today's mortgage rate analysis is based on live mortgage-backed securities (MBS) pricing provided by MBSQuoteline, a real-time mortgage market data service available to loan officers, real estate agents, and other finance professionals.

The MBS data supplied by MBSQuoteline is the same market data used to formulate current mortgage rates by the nation's mortgage lenders.

The chart at top depicts today's Fannie Mae mortgage bond pricing. Fannie Mae bonds are linked to conventional mortgage rates which include mortgage rates for programs such as the Home Affordable Refinance Program (HARP 2.0), the HomePath mortgage program, and others.

MBS prices are inversely related to today's mortgage rates.

The chart does not depict the path of today's Ginnie Mae mortgage bonds, although Ginnie Mae bonds and Fannie Mae bonds tend to move in similar directions.

Ginnie Mae mortgage bonds are linked to today's mortgage rates for FHA loans insured by the Federal Housing Administration; VA loans guaranteed by the Department of Veterans Affairs; and USDA loans guaranteed by the U.S. Department of Agriculture.

When mortgage bond prices rise, U.S. mortgage rates tend to fall. Conversely, when mortgage bond prices fall, U.S. mortgage rates tend to rise. In general, a twenty-five basis point change in MBS pricing -- up or down -- leads to a 0.125 percentage point change in mortgage rates.

Get An Instant Mortgage Rate Quote

Mortgage rates change all day, every day. The mortgage rates you get from your bank "now" won't be the same rates you get from your bank in an hour. Be smart when you shop. Compare multiple lenders and get your best deal.

Get started with a rate quote now. Mortgage rates are available online at no cost, with no obligation to proceed, and with no social security number required to get started.

Click here to get today's live mortgage rates.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

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