Mortgage Rate Price Tracker 🏠📉🔍 (JAN 5 – 30)
Monitoring the change in price of specific mortgage rates
Included in this post are the following:
THE TRACKER 🔭
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Most mortgages are sold into mortgage-backed securities (MBS) and the price of these bonds determines rates for all banks and lenders.
However, mortgage rates DO NOT rise or fall. Instead, the price of each rate changes while the rates available to you remain the same.
The Mortgage Rate Price Tracker (MRPT) illustrates this dynamic by showing how the price of each rate changed within the time series.
The higher the rate, the lower the fee (points). Some higher rates pay a rebate; this is illustrated on the tracker with negative (-) points.
When the “total change” is negative it means a reduction in the price of the rate.
The MRPT is a “rate and loan program” specific example of the LendZen Index, which monitors a much broader set of rates and mortgage bond coupons.
Both are effective for visualizing how the PRICE of mortgage rates has changed, while the LendZen Index is published daily at LendZen.substack.com
WEEK 4 📉
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Since the LendZen Index has a variety of time series, the MRPT will focus on just the current month’s activity.
Attached are the results for January Week 4.
You can also explore the results for Week 3 on this previous Substack post.
RATE RECAP ⏪
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This week silver traded like a meme coin, crashing 36% in a day.
Perhaps the shiny metal had too big of a bull run, or maybe it was Trump’s nomination of Kevin Warsh as the next Federal Reserve Chairmen (when Powell’s term ends in May).
This choice surprised markets, and inflation expectations, given that Warsh favors a more hawkish approach to monetary policy, which goes against Trump’s vocal demands for more rate cuts from Powell.
Fortunately, bonds were left out of the chaos even as the Core Producer Price Index came in much higher than expected (0.7 vs 0.2), which suggests CPI inflation could increase as higher producer input costs usually get passed onto the consumer.
This week bond markets had to navigate the FOMC rate decision (pause), silver’s manic rise and fall, not-so-friendly inflation data, and a Fed Chair nomination surprise.
The end result was a sideways grind that left mortgage bonds and mortgage rate prices only a tad better.
Insight into next week’s events, including the latest Rate Impact Calendar, will be posted in Sunday’s Week Ahead.
Meanwhile, the latest Lock-O-Meter risk scores and detailed rate lock recommendations with be posted Monday in the Data Deluge.
Thanks for reading.
If you want to shop real-time mortgage rates and get instant qualification results without providing any contact information visit LendZen.com
LendZen provides a fully automated mortgage shopping experience that gives you anonymous access to all mortgage rates with full transparency of costs upfront as bond prices change.
DISCLOSURES
LendZen Inc. is an equal opportunity mortgage lender, NMLS 375788.
