Mortgage Rates

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Today's Rate Volatility: HIGH What happened yesterday? Mortgage backed securities (MBS) lost - 78 basis points from last Friday's close which caused 30 year fixed rates to move higher from the prior week. MBS were under pressure all week (which drives mortgage rates upward) on three factors: First, we had some very strong economic news with ISM Manufacturing and Servicing, Auto Sales and a positive tone in the Fed's Beige Book.  Secondly, the bond market reduced some of its "fear factor" premium as news stories made it clear that a U.S. strike against Syria would not occur during the week.  And lastly, bond traders were betting that Friday's employment data would be stronger than expected.  All of the above caused mortgage rates to hit their highest levels in three years. And then the much anticipated Non-Farm Payroll (NFP) data hit on Friday. The market was expecting a reading in the range of 175K to 181K with "whisper numbers" above 190K.  But NFP came in at 169K.  Plus, July's reading of 167K was revised downward to an absolutely terrible number of 104K. This weaker than expected jobs data caused MBS to reverse course from the week-long sell off and regained some of their losses.  This helped mortgage rates improve from earlier in the week but we still closed down for the week.  What is on the agenda for today? Don't miss out on the mortgage industry's premiere insight and commentary. Subscribe to RateAlert Executive today and get today's lock advice, complete market commentary and forecast for today, and watch the full Morning Coffee Update video with Bryan McNee - all available only to our Executive subscribers.