April 18th, 2025 3:08 PM by T. Fanning
Hello! Wishing you a wonderful weekend and a happy Easter!
Mortgage rates saw decent improvement early this week, recovering from a 2-month high last Friday. While market volatility has eased since last week, continued uncertainty around fiscal policy suggests remaining watchful for potential rate swings.
Next week brings reports on how much people are buying, how factories are doing, the housing market, and how many people are losing jobs. Plus, the Federal Reserve will share its view of the economy and several Fed officials will talk. These reports and talks could make interest rates and the bond market move around a bit, especially if the news is surprising or if the Fed hints at changing its plans.
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); Conventional 0% down; 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: 4/17/25
Thursday's bond market has opened in negative territory following conflicting economic news. Stocks are mixed with the Dow down 386 points and the Nasdaq down 37 points. The bond market is currently down 2/32 (4.28%), but strength late yesterday should allow this morning's mortgage rates to be lower than Wednesday's early pricing by approximately .125 of a discount point.
Yesterday's 20-year Treasury Bond auction didn't go as well as last week's 10-year and 30-year sales did. The benchmarks of this week's auction showed an average demand from investors compared to other recent sales. Bonds showed little reaction when results were posted at 1:00 PM ET. They had already improved prior to the results announcement and moved again late in the day, but it was not due to the auction.
Fed Chairman Powell's speaking engagement in Chicago didn't give us any major surprises, basically reiterating what he said a couple of weeks ago. He repeated that the Fed is no hurry to start cutting key short-term interest rates, that they need to wait for better clarity on how President Trump's tariffs and other policies are going to affect the economy and inflation before making another move. Bonds did extend their afternoon gains slightly during and after his discussion. If you saw an afternoon improvement in rates, it likely was not solely because of his words even though what he said was enough for some lenders to make an intraday revision.
There were two early morning economic releases this morning. First was March's Housing Starts data that showed new home groundbreakings fell a larger than expected 11.4% last month to signal weakness in the new home market. Starts of single-family homes that are more relevant to residential mortgage rates declined 14.2%. As a sign of economic weakness, this data is favorable for mortgage rates. However, this particular report does not carry a high level of importance in the markets, preventing a better reaction in the bond market.
Last week's unemployment update revealed the number of new claims for jobless benefits dropped by 9,000 from the previous week's revised 224,000 initial filings. The 215,000 number fell short of the 225,000 that was predicted and shows strength in the employment sector. Therefore, we have to label the report bad news for bonds and mortgage pricing.
We have an early close in the bond market today and a full trading session for stocks. The bond market will close at 2:00 PM ET ahead of tomorrow's Good Friday holiday and will reopen Monday morning. Stocks are closed tomorrow. Don't be surprised to see a little weakness in bonds this afternoon as investors look to protect themselves from headlines over the extended weekend. If bonds lose ground this afternoon, we may see a small upward revision in rates before the end of the day.
Since there is no relevant data or other related events scheduled for tomorrow and the markets are closed, there will not be an update to this report. We would like to wish all of our readers a wonderful holiday weekend!
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
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