July 17th, 2022 12:44 PM by T. Fanning
Hello, I hope you had a great week and weekend!
Fixed rates had a nice decrease this week; ARM rates were slightly higher. Next week has little scheduled for release, especially if compared to this week. There are only a couple of relevant economic reports set to be posted with the majority being housing related. There is also a Treasury auction midweek that may have an influence on afternoon trading one day. We don't even have to worry about Fed speeches since they will be in their pre-FOMC meeting quiet period. Monday has nothing of importance scheduled that is likely to affect 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 Non-QM (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: 7/15/22
Friday's bond market has opened in positive territory despite mostly unfavorable economic news and an early stock rally. The major stock indexes are responding to the data with the Dow up 501 points and the Nasdaq up 118 points. The bond market is currently up 8/32 (2.93%), which with gains from another mid-day rebound yesterday, should improve this morning's mortgage rates by approximately .250 of a discount point. If you saw an intraday improvement Thursday, you will likely see a smaller improvement in this morning's pricing.
Today's major economic release was June's Retail Sales data at 8:30 AM ET. The Commerce Department announced a 1.0% rise in consumer sales last month, exceeding forecasts of 0.8%. The larger rise indicates inflationary pressures haven't affected consumer demand as much as thought. Even a secondary reading that excludes more volatile and costly auto sales rose 1.0% when it was predicted to be up 0.6%. This is bad news for bonds and mortgage rates because consumer spending makes up over two-thirds of the U.S. economy. The sign of economic strength makes long-term securities, such as mortgage bonds, less appealing to investors that leads to higher rates.
We also got a little manufacturing data with the release of June's Industrial Production report at 9:15 AM ET. It showed output at U.S. factories, mines and utilities actually fell 0.2% when it was expected to rise by the same amount. This is a sign of slowing manufacturing activity and allows us to label the report favorable for mortgage pricing.
Closing out this week's calendar was the preliminary University of Michigan Index of Consumer Sentiment for July at 10:00 AM ET. The index came in at 51.1, giving us another sign that the current inflation situation isn't having as much of an impact on the consumer as expected. July's initial reading is an increase from June's 50.0, meaning surveyed consumers felt better about their own financial and employment situations this month than last month. Since rising confidence usually translates into stronger consumer spending, this report is bad news for bonds and mortgage rates.
Next week has little scheduled for release, especially if compared to this week. There are only a couple of relevant economic reports set to be posted with the majority being housing related. There is also a Treasury auction midweek that may have an influence on afternoon trading one day. We don't even have to worry about Fed speeches since they will be in their pre-FOMC meeting quiet period. Monday has nothing of importance scheduled that is likely to affect 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... Float 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
Regulated by the Colorado Division of Real Estate
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.