CHM Blog

The most expensive square meter of housing:

$1 Million dollars will buy you just 17 square meters of luxury housing in Monaco, making it the most expensive prime housing in the world.

Rounding out the top ten are:

2) Hong Kong 21 sq m

3) New York 33 sq m

4) Singapore 34 sq m

5) London 34 sq m

6) Geneva 37 sq m

7) Los Angeles 39 sq m

8) Paris 43 sq m

9) Shanghai 44 sq m

10) Sydney 44 sq m

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market.  This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events.  When MBS pricing goes up, mortgage rates or pricing generally goes down.  When they fall, mortgage pricing goes up.  Tracking these securities real-time is critical.  For more information about the rate market, contact me directly.  I’m among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Lower

Mortgage rates are moving lower today. The MBS market improved by +13 bps last week. This was not enough to decrease mortgage rates or fees. The market experienced high volatility last week.

This Week's Rate Forecast: Lower

Three Things: These are the three areas that have the greatest ability to impact rates this week: 1) SVB, 2) Inflation and 3) Central Banks

1) SVB: The fallout from Silicon Valley Bank continues to drive money into long bonds as a flight to safety. It was the biggest factor in rates last week. Speculation and concern that other similar banks may face the same issues.

2) Inflation: We get our last big dose of economic data that the Fed needs before their FOMC meeting next week. This week we will get CPI and PPI.

3) Central Banks: We get an important interest rate decision out of the ECB. They flat out said that they would raise it 50BPS at their last meeting but will they back off their forward guidance at this meeting?

This Week's Potential Volatility: High

This morning markets are getting a huge boost on banking fears. Volatility is extremely high and will remain so as long as banking fears dominate the news cycle.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.

Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

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