Today's mortgage rates are lower.
MBS began the session with large gains, as bond yields in Europe moved lower. Core inflation in the Eurozone declined. A shortfall in today's US GDP data (see below) provided another small boost. Chicago PMI manufacturing rose to 59.4, above the consensus of 58.0. Consumer Sentiment came in at 98.1, close to expectations, and the highest level since 2004.
The first reading for fourth quarter GDP, the broadest measure of economic activity, showed an annual growth rate of 2.6% during the fourth quarter, below the consensus of 3.2%. This was down from 5.0% growth during the third quarter. For all of 2014, GDP increased 2.4%. The performance of the key components of GDP were mixed during the fourth quarter. Consumer spending was a bright spot, rising at the fastest pace in almost nine years. Business investment was weak, however, and exports were hurt by the stronger dollar. Mortgage rates improved a little after the data, but the reaction was muted since the GDP data is so volatile quarter to quarter. Compared to the size of the possible revisions, the shortfall in the data was relatively small. Three months ago, the first reading for third quarter GDP was 3.5%, and the final results after revisions was a much larger 5.0%.
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.
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.
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 a complimentary mortgage rate quote now. Rate quotes are available at no cost, with no obligation to proceed, and with no social security number required to get started.
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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2015 Conforming & FHA Loan Limits
Mortgage loan limits for every U.S. county,
as published by Fannie Mae & Freddie Mac, and the FHA.