Conforming Loan Limits Increased to $726,200!
I hope you had a great Thanksgiving! Thank you for being a part of my life!
Rates were again mixed this week – all minor changes. Next week has a busy calendar with many events scheduled that carry the potential to influence mortgage rates. Besides the key economic reports that we get with the new month, there are also a large number of other releases scheduled. In addition, there are Fed member speaking engagements, one of which is by Fed Chairman Powell. The week starts light with nothing set for Monday that we need to be concerned with and only a moderately important report Tuesday. But the middle and latter days are packed with events that should cause a great deal of volatility in the financial and mortgage markets.*
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: 11/25/22
Friday's bond market has opened in negative territory, taking back a good part of Wednesday's afternoon rally. Stocks are mixed with the Dow up 147 points and the Nasdaq down 36 points. The bond market is currently down 20/32 (3.73%), but gains late Wednesday should still allow for this morning's mortgage rates to be lower by approximately .125 of a discount point. If you saw an intraday improvement Wednesday, you may see a larger increase in this morning's pricing. The markets were closed yesterday for the Thanksgiving Day holiday.
There is nothing of importance scheduled for release today. The markets will close early as part of the holiday weekend. Stocks will trade until 1:00 PM ET and the bond market will close at 2:00 PM ET. We should see very light or thin trading in bonds today as a result of many traders being home already for the extended holiday weekend. This means that we shouldn't be overly excited about a positive move later today (lower rates) nor be concerned about this morning's early weakness in bonds. The thin trading causes bond prices to move more than they normally would, so we shouldn't give much credence to any change, regardless of which direction it may be. Once traders return in force Monday morning, any exaggerated change should be corrected at that time.
Wednesday afternoon's release of the minutes from this month's FOMC meeting did yield a bit of information that the markets liked. While it didn't come as a major surprise since Chairman Powell and other Fed members have made recent comments in support of the same, the markets still responded favorably to the minutes showing a growing consensus that the Fed needs to start slowing the pace of their rate hikes. It was one thing to have market analysts call for a slowing, but seeing that more voting FOMC members feel the same makes it more of a reality. Traders now predict the Fed will raise key short-term rates by a half-point at next month's meeting after four consecutive three-quarter point moves. This led to an improvement in bonds and mortgage rates late Wednesday.
Next week has a busy calendar with many events scheduled that carry the potential to influence mortgage rates. Besides the key economic reports that we get with the new month, there are also a large number of other releases scheduled. In addition, there are Fed member speaking engagements, one of which is by Fed Chairman Powell. The week starts light with nothing set for Monday that we need to be concerned with and only a moderately important report Tuesday. But the middle and latter days are packed with events that should cause a great deal of volatility in the financial and mortgage markets. 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... Lock 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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Happy Friday, I hope you’ve had a good week.
Rates were mixed this week, but stayed fairly flat. Next week will be shortened by the Thanksgiving holiday but still has plenty scheduled that may influence mortgage rates. It starts off with mid-term Treasury auctions Monday and Tuesday that will come into play during early afternoon trading those days. Wednesday has a large batch of data and other events scheduled that we will be watching.*
Last Updated: 11/18/22
Friday's bond market has opened in negative territory despite favorable economic data. Stocks are mixed with the Dow up 96 points and the Nasdaq down 3 points. The bond market is currently down 5/32 (3.78%), but due to gains late yesterday we should still see an improvement in this morning's rates of approximately .125 of a discount point.
Both of this morning's economic reports were posted at 10:00 AM ET. The National Association of Realtors gave us their Existing Home Sales report for October. With it they announced a 5.9% decline in home resales last month, the ninth consecutive monthly decline. This was a bit smaller of a decline that was expected, but nevertheless, another month of housing sector weakness shows a slowing economy and is good news for bonds.
The Conference Board said their Leading Economic Indicators (LEI) for October fell 0.8% when analysts were expecting to see a 0.5% drop. A decline means the indicators are predicting weaker economic activity over the next several months. Today's larger than expected decline means they are pointing to much softer activity than many had thought, making the report good news for bonds and mortgage rates.
Next week will be shortened by the Thanksgiving holiday but still has plenty scheduled that may influence mortgage rates. It starts off with mid-term Treasury auctions Monday and Tuesday that will come into play during early afternoon trading those days. Wednesday has a large batch of data and other events scheduled that we will be watching. Look for details on all of the week's activities in Sunday evening's weekly preview.
Happy Veterans Day! A sincere thank you to all who served and are serving!
Rates had a phenomenal week due to better-than-expected inflation news. November's preliminary reading of the University of Michigan's Index of Consumer Sentiment will be posted at 10:00 AM ET tomorrow. This index measures consumer confidence, which gives us an indication of consumer willingness to spend. It is expected to show a reading of 59.6, down a little from October's final reading of 59.9. That would be considered slightly favorable news for bonds because waning sentiment means consumers are less optimistic about their own financial situations and are less likely to make large purchases in the near future. With consumer spending making up over two-thirds of our economy, any related data is watched closely. The lower the reading, the better the news it is for mortgage shoppers.*
Last Updated: 11/10/22
Thursday's bond market has opened up sharply following the release of extremely favorable inflation data. Stocks are reacting to the same headlines, fueling a huge rally that is pushing the Dow up 894 points and the Nasdaq up 594 points. The bond market is currently up 58/32 (3.85%), which will create a significant improvement in this morning's mortgage rates. The spike in mortgage bond prices this morning is too large to estimate just how it will translate to actual mortgage pricing since some lenders may not reflect the full move in today's rates in case there is a retreat later in the day.
Yesterday's 10-year Treasury Note auction did not go well with the benchmarks showing a weak demand for the securities compared to other recent sales. The bond market initially reacted negatively once results were posted but was able to recover that move before closing. We have a 30-year Bond auction taking place today with results being posted at 1:00 PM ET. Another ugly sale could lead to afternoon weakness in bonds that may cause a slight upward revision to mortgage rates before the end of the day.
Today's major economic release was October's Consumer Price Index (CPI) at 8:30 AM ET. It revealed a 0.4% rise in the overall CPI and a 0.3% increase in the core data that excludes volatile food and energy prices. Both readings were well below expectations up 0.7% and 0.5% respectively, signaling inflationary pressures at the consumer level of the economy were softer than thought. That is very good news for bonds and mortgage rates because waning inflation makes longer-term securities such as mortgage bonds, more attractive to investors. It also raises the possibility of the Fed slowing their short-term interest rate hikes sooner than later.
Also posted early this morning was last week's unemployment numbers that showed 225,000 new claims for benefits were filed last week. This was a bit higher than the 220,000 that was expected and an increase from the previous week's 218,000 initial filings. We can label the release favorable for rates, but the truth is the CPI is really the only thing in focus this morning. That report carries much more significance than this weekly update does.
The bond market will be closed tomorrow in observance of the Veteran's Day holiday and will reopen for regular hours Monday, although the stock markets have a full day of trading. There is no early close today ahead of the holiday. If lenders are open for business tomorrow, they probably will use this afternoon rates or not allow new locks until Monday morning.
November's preliminary reading of the University of Michigan's Index of Consumer Sentiment will be posted at 10:00 AM ET tomorrow. This index measures consumer confidence, which gives us an indication of consumer willingness to spend. It is expected to show a reading of 59.6, down a little from October's final reading of 59.9. That would be considered slightly favorable news for bonds because waning sentiment means consumers are less optimistic about their own financial situations and are less likely to make large purchases in the near future. With consumer spending making up over two-thirds of our economy, any related data is watched closely. The lower the reading, the better the news it is for mortgage shoppers.
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...
Hi, I hope you had a good week.
For the sixth time this year, the Fed unsurprisingly raised their benchmark rate. Mortgage rates reacted by giving back the decrease from last week, ending the week higher. Next week has only a couple of economic reports scheduled, but it does bring the highly important Consumer Price Index (CPI) that measures consumer inflation. There are also two Treasury auctions that have the potential to move rates during afternoon hours midweek. Monday has nothing of importance scheduled, meaning weekend headlines could be the driving force for bonds as the new week begins.*
Last Updated: 11/4/22
Friday's bond market has opened in positive territory following mixed employment news. Stocks are showing strength with the Dow up 418 points and the Nasdaq up 130 points. The bond market is currently up 5/32 (4.12%) after initially reacting negatively to this morning's early data. Afternoon gains yesterday, coupled with this morning's strength, should improve today's mortgage rates by approximately .375 - .500 of a discount point if compared to Thursday's morning pricing. If you saw an intraday improvement in rates yesterday, you should see a smaller move this morning.
Today's sole economic release was October's Employment report that showed the U.S. unemployment rate moved up 0.2% to 3.7% last month and that 261,000 new jobs were added to the economy despite the Fed's heavy rate hikes this year. The higher unemployment rate is good news for bonds and mortgage rates, but the payroll number exceeded forecasts of 215,000 in a sign of strength. Furthermore, a healthy upward revision of 52,000 jobs to September is another sign the employment sector is holding ground despite the Fed hoping for some weakness.
The third headline revealed a 0.4% increase in average earnings when forecasts were calling for a 0.3% rise. Higher wages give consumers more money to spend and usually causes companies to charge more for their products and services. Both contribute to rising inflation that make long-term securities, such as mortgage bonds, less appealing to investors and causes the Fed to be more aggressive with their rate hikes. This is what was behind the initial negative move during early morning trading. Fortunately, bonds have since rebounded into positive ground.
Next week has only a couple of economic reports scheduled, but it does bring the highly important Consumer Price Index (CPI) that measures consumer inflation. There are also two Treasury auctions that have the potential to move rates during afternoon hours midweek. Monday has nothing of importance scheduled, meaning weekend headlines could be the driving force for bonds as the new week begins. Look for details on next week's calendar in Sunday evening's weekly preview.
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