We will review today’s mortgage rates. I will also break down what is impacting mortgage rates going up or down in Metro Detroit.

Today's Mortgage Rates ~ October 7,2024

In this blog post, I aim to do more than provide Today’s mortgage rate base for Metro Detroit. It’s not just about the numbers; it’s about knowing the economic and Wall Street trends impacting mortgage rates and your monthly payment. I’m launching a new blog post, “Cracking the Mortgage Rate Code: When Will they Drop,” which will be updated every Sunday night by 9:00 pm. I’ll dive deeper into rates and trends for the week, as well as predictions based on economic trends for next week and how the trends will impact mortgage rates. This is your “WHY” so lenders can’t mislead you. Let’s get started, Metro Detroit!

💥Breaking News ~ Afternoon Update: Beyond Yucky for Mortgage Rates😨

Good Afternoon Metro Detroit 🌩️~ After the Fed announced they cut interest rates by 50 basis points last week, the 10-year treasury yield has slowly increased, and the mortgage base rate has followed. The Wall Street market is rallying Friday due to the jobs report, and unemployment dropped to 4.1%.

There is little investment movement in the bonds or securities market, and the yield has skyrocketed. Mortgage rates jumped back on the roller coaster, and we will not enjoy the ride. 😡The ten-year yield is climbing again Today and moving closer to the low 4% range. Now you know the WHY! I will do a deeper Sunday on what is causing this spike. In the past, it was a sign of a recession. It is on my radar. Check back and read “Crack the Mortgage Rate Code: When Will they Drop”!

Where Will the Mortgage Rate Go Today

Unfortunately, rates will increase again Today and are now over 6.5*% and could be in the high 6.6*% range Today. Prediction: ~ The 10-year treasury yield is up .078 from Friday to 4.022%. Actual rates will be released between 1 and 2 pm.

The average MBS price gap rate has been under 2.45% and skyrocketed Today, up .266% to 2.586 on Friday. Today will be another bad day for MBS Prices. They are running in the negative range and significantly weaker. Mortgage Rates Range

IF MBS prices are the same as Friday ~ Yeild of 4.022 + Gap 2.586 = Rate of 6.61% Plus or Minus .02%.

I have no idea where they will land due to the MBS Prices and either way will have a negative impact mortgage rates today. They are just UGLY 😨

Step #1 ~ How to Calculate Mortgage Rates 🤩

Supporting Graphs Below for 10-7-2024⤵️

Mortgage Rate Calculation | Team Tag It Sold

Updates will be provided between 1 and 2 p.m. Moving forward, we are tracking the gap, and the steady downward trend will impact mortgage rates and your monthly payment.

10-year Treasury Yield: 4.022% + Mortgage-backed Securities Pricing: (MBS) 2.598% = 6.62%

Your Formula for Mortgage Rates

MBS Prices will be released with the mortgage base rate between 12:30 & 2:00. Knowing how today’s mortgage rates are set is essential if you’re curious about where they are going. It starts with the 10-year Treasury Yield, your base, the MBS Gap #, and voilà…mortgage rate. If you haven’t already, check out the blog post “Understanding Mortgage-Backed Securities’ Effects on Mortgage Rates.”… Start There

💥”What If”🚀 Investors start investing in Securities & the MBS Gap Rate Goes Down? 💥

💥 Goal #1 Metro Detroit ~ there needs to be a steady decline in the MBS Prices to the 50-year average of 1.72%. 💥As you can see from the left side of the graph, mortgage rates are considerably lower even if the yield rates are higher as long as the MBS Price Gap is much lower than it is today. We watch the MBS prices to determine when and how fast mortgage rates will drop.

💥The graph on the right shows today’s mortgage rate calculation. You can scroll through this week’s mortgage rate trends to understand the importance of the MBS Pricing Gap.

Mortgage-backed Securities for the Past Five Days

MBS Price Gap Average

10-7-2024 ~ Mortgage Rates Base Today ~ UP Ugly 0.09% and the past 2 days up .36%😨

If you’re on the journey to buying a home in Metro Detroit, you’ve likely been monitoring Today’s Mortgage Rates. Remember, I track baseline mortgage rates; the mortgage rate doesn’t include points lenders charge to buy down the rate, your credit score, or your down payment. Your mortgage rate will be lower or higher depending on the above conditions.

Mortgage Rates

This is a new one: interest rates go down, and mortgage rates go up. This should be temporary, and Wall Street should be back on track as we move into next week. I’ll know more once the CPI numbers are released. Check in and view “Cracking the Mortgage Rate Code and Save” after Sunday at 9:00 pm to see the predictions of where mortgage rates will be heading next week. Mortgage Daily News posts the live feed between 12:30 -2:00 pm. Check back in the afternoon regarding the analytics side. Sometimes, I’m late updating the graphs on this page. 🤓

Check Out What Other Lenders Quotes for Morgage Loans ⤵️

Mortgage Daily News October Trends

The great news🎊 is that we hit September’s goal of a mortgage rate base of 6.25%. The better news🥳🎉 is that we now have a new goal: a 6% base rate.

Mortgage Daily News Month End for September

Freddie Mac Survey ~ It doesn’t matter where they were

The Freddie Mac Survey average for home loans from 9-26 to 10-2 was 6.12%, and those trends are history, and they don’t matter. I don’t know the average FIOCO Score, downpayment, or lender points. I do not use the Freddie Mac PMMS for the base rate. When you hear mortgage rates in the news, it’s from the Freddie Mac MMS. Your rate could be more or less.

Step #3 ~ Mortgage Daily News ~ Compare Mortgage Rate Lender Quotes

Mortgage Daily News Lender Quotes is excellent for getting you started. I recommend entering your financial data. The numbers to watch for are your Rate ~ Fees and points ~ Points ~ and monthly principal and interest payments.

Compare Lender Quotes⬇️

Mortgage rates are changing too quickly, and lenders update their quotes between Noon and 3:30 to get the best quotes. I’m no longer taking screenshots, so I recommend clicking the picture below and changing the criteria for your quote. Change the following requirements:

Loan Term
Purchase Price
Down Payment
Zip Code of Purchase
FICO Score, not Credit Score ~ Experian for free report
More Options: VA ~ FHA ~ USDA
Update Lenders and review quotes.

Let’s Decode Mortgage Rate Options Together! 🤩

Wow 😮, there is a lot to consider! If you need mortgage help, let’s simplify the process together. Schedule a Zoom call with me, and we’ll review the data. I’ll share my screen so you can see the market insights for Metro Detroit clearly and feel confident about your next steps.⤵️

What My Crystal Ball 🔮 is Telling Me Regarding Today’s Mortgage Rates for Metro Detroit

We now have our first Interest Rate Cut of 50 basis points and Fed Policy changes. Over time, those changes will impact mortgage rates. I’m in a do-over. I have no idea what caused this jump yet. The 10-year treasury yield is on a bumpy ride. I’ll know more on Sunday if this is temporary.

The Declines Moving Forward

Well, nothing is making sense. The only thing is that the Fed is trying to prepare for a soft landing. Let’s face it: mortgage rates are ugly again, and Why? For the yield, it could be investor optimism. This optimism leads them to shift funds from bonds to higher-yielding stocks, causing the bond yield to rise. For mortgage-backed securities, the Fed could now feel comfortable with mortgage rates down so low that it could start adjustments in its balance sheet by reducing holdings. Increasing the supply drives down the price and increases the gap. It’s the only two events that make sense to me and why we have such a massive jump in a few days.

Wall Street & The Fed Policies

It seems the Fed is confident that inflation is on the right track. CPI is down to 2.5%, and PCE is down to 2.2%. Inflation is no longer on the Fed’s radar, but the jobs report is. We are in a flux stage, and the ride will be bumpy. Job creation was stronger than predicted, unemployment decreased to 4.1%, and corporate earnings were robust. This fuels investors to stay in the stock market and away from bonds.

The Economy

Monitor the economy to determine mortgage rates’ direction. The Fed isn’t worried about inflation as much as job creation and the possibility of a recession. You can dive deeper into where mortgage rates will be heading next week by visiting “Cracking the Mortgage Rate Code: When Will They Drop.”