March 15th, 2024 3:37 PM by T. Fanning
Hi, I hope you have a great St. Patrick’s Day!
Interest rates rose this week in response to better than expected economic and employment data. The prevailing sentiment now suggests that the Federal Reserve will refrain from lowering the Fed Fund rate until the latter half of this year. Next week has just a couple of economic reports scheduled for release and none of them are nearly as important as some of this week's data was. There is also another Treasury auction taking place midweek. However, the most important event by far will be the FOMC meeting that is adjourning Wednesday afternoon.*
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); Conventional, 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 can also do non-traditional programs! 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: 3/15/24
Friday's bond market has opened in negative territory as yesterday's selling carries into the new day. Stocks are looking to end the week on a negative note also with the Dow down 120 points and the Nasdaq down 123 points. The bond market is currently down 6/32 (4.31%), which should push this morning's mortgage rates higher by approximately .250 of a discount point. If you saw an intraday increase yesterday, you should see a smaller bump this morning.
February's Industrial Production report was posted 9:15 AM ET this morning, revealing output at U.S. factories, mines and utilities rose modestly last month. The 0.1% increase was not a wide variance from the unchanged forecast and still points towards flat growth in the manufacturing sector. Accordingly, we are labeling it neutral for mortgage rates.
Closing this week's calendar was the University of Michigan's Index of Consumer Sentiment for March at 10:00 AM ET. They announced a reading of 76.5 that fell short of the expected 77.3 and down a little from February's 76.9. The decline means fewer surveyed consumers felt good about their own financial and employment situations than did last month. Because waning confidence usually translates into softer consumer spending numbers, this report is good news for bonds and mortgage rates. Unfortunately, the negative momentum from yesterday's data is too strong for this report to offset.
Next week has just a couple of economic reports scheduled for release and none of them are nearly as important as some of this week's data was. There is also another Treasury auction taking place midweek. However, the most important event by far will be the FOMC meeting that is adjourning Wednesday afternoon. 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... Float 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.*
*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
Company NMLS ID: 479289 | LO NMLS: 208694
CO License: 100008854
FL Company License: MBR4416 | FL License: LO89221
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