June 30th, 2023 12:55 PM by T. Fanning
Hello, I hope you have a great, long and safe July 4th weekend!
Rates ended the week higher. Next week is holiday-shortened, but still brings us some highly important economic data. We will get the Institute for Supply Management's (ISM) manufacturing index late Monday morning and the almighty monthly Employment report Friday. In between those releases are a couple of moderately influential reports, the release of the FOMC minutes along with an early close one day and full-day closure another for the Independence Day holiday.*
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
Last Updated: 6/30/23
Friday's bond market has opened up slightly following mixed economic news. Stocks are looking to close the week on a positive note, pushing the Dow higher 259 points and the Nasdaq up 187 points. The bond market is currently up 3/32 (3.83%), but weakness late yesterday is likely to keep this morning's mortgage rates slightly higher than Thursday's early pricing. If you saw an intraday increase Thursday afternoon, you may see a small improvement in this morning's pricing.
May's Personal Income and Outlays report was released at 8:30 AM ET this morning, revealing a 0.4% rise in income and a 0.1% increase in spending. The income reading matched forecasts, but the spending number was expected to rise 0.3%, making it good news for rates. Both readings were revised lower for April also. More importantly, the Fed's preferred inflation indexes (PCE and Core PCE) that are part of this report, didn't reveal any surprises. Accordingly, we can label the overall report favorable for bonds and mortgage rates.
Today's second release came from the University of Michigan, who announced their revised Index of Consumer Sentiment stood at 64.4 this month. This was an upward revision from the preliminary 63.9 reading two weeks ago. Rising sentiment indicates consumers feel better about their own financial situations and are more likely to spend. Since stronger consumer spending numbers fuel economic growth, we can consider this report to be negative for bonds and mortgage rates.
Next week is holiday-shortened, but still brings us some highly important economic data. We will get the Institute for Supply Management's (ISM) manufacturing index late Monday morning and the almighty monthly Employment report Friday. In between those releases are a couple of moderately influential reports, the release of the FOMC minutes along with an early close one day and full-day closure another for the Independence Day holiday. 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
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