THE MORTGAGE REPORTS | BY: JOE FARR | POSTED 04/13/2016
April 13, 2016: Mortgage markets changing today's mortgage rates
What's Impacting Today's Rates?
Today's mortgage rates are higher.
Stronger than expected Chinese economic data outweighed a shortfall in the U.S. data this morning. Chinese exports surpassed expectations, causing a rally in global stock markets. MBS moved a little higher after the release of the U.S. data, but the gains did not hold.
March Retail Sales fell 0.2% from February, below the consensus for an increase of 0.1%. Excluding the volatile auto component, retail sales rose 0.2%, below the consensus for an increase of 0.4%. After a slow start to the year, investors were hoping to see stronger retail sales activity in March. The March PPI inflation data also came in weaker than expected.
As a mortgage rate shopper, it's important to know when today's rates are changing. This is because, when mortgage rates change, mortgage lenders will not honor rate quotes which have not been previously "locked".
To lock today's mortgage rates, then, be sure to commit with your lender before current rates begin to move. Whether you're trying to lock a purchase or a refinance loan, the market waits for no one.
Click to see today's rates (Apr 13th, 2016)
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 3-percent down Conventional 97 loan, the HomePath mortgage program, and others.
MBS prices are inversely related to today's mortgage rates. When bond prices rise, mortgage rates sink. 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.
Note that the chart above 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 bonds correlate to today's mortgage rates for FHA loans, such as the FHAStreamline Refinance, which are 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.
What Are The Current 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 today's real-time mortgage rates now. Your social security number is not required to get started, and all quotes come with instant access to your live credit scores.
Show Me Today's Rates (Apr 13th, 2016)
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JOE FARR is a 20-year veteran of the mortgage industry. He is MBSQuoteline's Director of Sales and Marketing. For up-to-the-minute MBS prices throughout the day, go towww.mbsquoteline.com.
