October 1st, 2021 10:46 AM by T. Fanning
Happy First Day of October!
If you didn’t receive my Breaking News message yesterday, conforming loan limits are going to be raised to $625,000. This means buyers will be able to obtain higher loan amounts using Fannie Mae or Freddie Mac – typically better rates.
We now serve the state of Florida! Let me know if I can be of any help with any buyers/borrowers in either Colorado or Florida!
Rates ended the week mixed. Next week does not have a large number of economic releases or other noteworthy events scheduled. The week starts with a moderately important Factory Orders report Monday and closes with the almighty Employment report Friday. In between, there is little scheduled that is expected to affect mortgage rates.*
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans; FHA and VA 1x Close Construction-Perm; 1.50% Down FHA Advantage Program; CHFA Financing; HomeStyle renovation program; and a Jumbo, 5% down program. We also can do hobby farms, Ag properties and Alt-A (stated income, verified assets for self-employed borrowers)! To see a detailed list of programs, visit our website: www.homeloanmortgageco.com/mortgageprograms
As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!
Last Updated: 10/1/21
Friday's bond market has opened in positive territory despite stronger economic news and a mixed open in stocks. The Dow is currently up 21 points while the Nasdaq is down 95 points. The bond market is currently up 3/32 (1.48%), which with yesterday's afternoon strength should improve this morning's mortgage rates by approximately .250 of a discount point if compared to Thursday's early pricing. If you saw an intraday improvement before closing yesterday, you should see a smaller improvement this morning.
The first of this morning's three economic releases was August's Personal Income and Outlays at 8:30 AM ET. It showed a 0.2% rise in income and a 0.8% jump in spending. The income reading pegged forecasts, but the spending was a little stronger than expectations. Also worth noting was the 0.4% rise in the PCE index that the Fed relies on to gauge inflation, exceeding predictions slightly. With two of the three headline readings giving us stronger than expected results, we should consider the data to be slightly negative for mortgage rates.
September's ISM manufacturing index was today's most important release. The Institute for Supply Management announced a 61.1 reading that was stronger than forecasts, indicating surveyed manufacturing executives felt business was better last month than many had thought. Since that is a sign of manufacturing strength, we should consider the data to be unfavorable for bonds and mortgage rates.
Closing out this week's calendar was the University of Michigan's revised Index of Consumer Sentiment for September. The announced a reading of 72.8, which was an upward revision from the preliminary reading of 71.0 from two weeks ago. The higher number means surveyed consumers felt a little better about their own financial and employment situations than a couple weeks ago. Rising confidence usually translates into stronger levels of consumer spending that fuels economic growth. Accordingly, we have to label this report as slightly negative for rates also.
Next week does not have a large number of economic releases or other noteworthy events scheduled. The week starts with a moderately important Factory Orders report Monday and closes with the almighty Employment report Friday. In between, there is little scheduled that is expected to affect mortgage rates. Look for details on all of next week's activities in Sunday evening's weekly preview.
If I were considering financing/refinancing a home, I would....
Lock if my closing were taking place within 7 days...Lock if my closing were taking place between 8 and 20 days...Lock if my closing were taking place between 21 and 60 days...Float if my closing were taking place over 60 days from now...
This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.*
*http://www.hlmcolorado.com/DailyRateAdvisory
Company NMLS ID: 479289 | LO NMLS: 208694
CO License: 100008854
FL Company License: MBR4416 | FL License: LO89221
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
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