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What makes mortgage rate change all the time?

By
Mortgage and Lending with Watermark Capital NMLS #311662

Mortgage rates are primarily driven by bond markets. If people flee the stock market and move money to more conservative investments like bonds rates generally drop. Here is a calendar of what might affect rates this week.

The bond and mortgage markets opened quietly unchanged early this morning with stock indexes slightly lower at 8:30. There are no scheduled economic releases today, and this week has just a few key reports later in the week. The week  is dominated by Federal Reserve officials speaking and Janet Yellen testifying at the House and Senate in the semi-annual required testimony by the head of the Fed on monetary policy, the economy and inflation. The Treasury will borrow $70B this week.

At 9:30 the DJIA opened -8, NASDAQ unchanged and S&P -1; 10 yr at 9:30 2.686% about unchanged and 30 yr MBS prices +5 bps frm Friday’s close.

 

This Week’s Calendar:
       Tuesday,
            10:00 am Janet Yellen begins testifying at the House Financial Services Committee
                          Dec JOLTS job openings (N/A)
                          Dec wholesale inventories (+0.6%)
            1:00 pm $30B 3 yr note auction
      Wednesday,
            7:00 am weekly MBA mortgage applications
            1:00 pm $24B 10 yr note auction
            2:00 pm Jan Treasury budget ($-$10.0B)
      Thursday,
            8:30 am weekly jobless claims (-1K to 330K)
                         Jan retail sales (-0.1%, ex auto sales +0.1%)
           10:00 am Dec business inventories (+0.5%)
                          Janet Yellen at the Senate Banking Committee
            1:00 pm $16B 30 yr bond auction
      Friday,
            8:30 am Jan export prices (+0.1%, import prices -0.1%)
            9:15 am Jan industrial production (+0.3%)
                         Jan capacity utilization (79.4% frm 79.2% in Dec)
            9:55 am U. of Michigan Fed mid-month consumer sentiment index (80.0 from 81.2 in Jan)

Have a great week!

Posted by

Matt Brady

Branch Manager, NMLS ID#311662

(858)342-8659 cell |

matt.brady@watermarkhomeloans.com  
8885 Rio San Diego Dr │ Suite 201  San Diego, CA 92108     

 

BIA SanDiego 19 year Member and P2 Sponsor

 

BIA SMCBoard Member since 2012

 

 

 

 

Comments (1)

Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

Great, simple to understand answer to what makes mortgage rates change all the time. 

Here is to keeping those rates below 5 for awhile...

Feb 23, 2014 01:53 AM