September 2nd, 2022 10:27 AM by T. Fanning
Hello, I hope all is well.
Rates had a sharp increase from last Friday’s numbers. Next week has little scheduled that is expected to influence mortgage rates with exception to a few Fed member speeches. The markets will be closed Monday for the Labor Day holiday with no early closings today.*
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
Last Updated: 9/2/22
Friday's bond market has opened in positive territory as investor fears this week about what today's economic data would show appear to have been unfounded. Stocks are showing relatively minor gains of 84 points in the Dow and 11 points in the Nasdaq. The bond market is currently up 18/32 (3.19%), which should improve this morning's mortgage rates by approximately .375 of a discount point.
Today's major economic release was August's Employment report at 8:30 AM ET. It revealed the U.S. unemployment rate jumped to 3.7%, when it was expected to hold at July's 3.5%. There were 315,000 new jobs added to the economy last month, exceeding forecasts of 295,000-300,000 and average income rose 0.3%, falling short of the 0.4% rise that was expected.
The report gave us mixed readings about the strength of the employment sector. The higher unemployment report rate and slower than predicted growth in earnings are both favorable headlines for the bond market and mortgage rates. A higher unemployment rate is a sign of weakness in the sector while rising earnings contribute to inflation concerns, so the weaker number eases some threat of it and the negative impact it has on bonds. On the other hand, the higher payroll number is considered to be bad news for bonds and mortgage rates since it signals growth in the sector. Overall, the report is mostly favorable for rates, allowing the positive reaction in this morning's trading.
July's Factory Orders data was posted at 10:00 AM ET this morning but drew much less attention that the first report did. The Commerce Department announced a 1.0% decline in new orders for durable and non-durable goods. This was much weaker than the 0.2% increase that was expected, giving us a sign of manufacturing weakness. Accordingly, we can label the report good news for bonds and mortgage pricing, but focus was much more on the Employment report this morning than this data.
Next week has little scheduled that is expected to influence mortgage rates with exception to a few Fed member speeches. The markets will be closed Monday for the Labor Day holiday with no early closings today. Look for details on next week's calendar 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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