The Home Loan Mortgage Blog

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Hi, happy Friday!

 

Rates had another nice week; fixed rates ended lower, ARM’s ended a bit higher. Next week has several economic reports that are considered to be moderately to highly important for the markets to digest. Monday's calendar is empty, meaning we can expect weekend headlines to drive trading (if there is any relevant news). The most important reports, including the FOMC minutes, come mid and late week.*

 

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 Alt-A (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!


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Last Updated: 5/20/22

 

Friday's bond market has opened in negative territory with little to drive trading other than early stock gains. Stocks are looking to close the week on a positive note, pushing the Dow up 169 points and the Nasdaq up 94 points. The bond market is currently down 4/32 (2.85%), but a little strength late yesterday should allow this morning's mortgage rates to be approximately .125 of a discount point lower than Thursday's morning pricing.

 

Today doesn't have anything scheduled that we need to be concerned about. It is not surprising that we are seeing bonds open in negative ground since stocks are up. This is a pattern that we will likely see over the next couple weeks. Stock gains generally cause bond prices to move lower, leading to higher yields and an upward move in rates. When traders are selling stocks, bonds are often the beneficiary as investors look for safety from the volatility. As funds come into the bond market, bond prices rise and mortgage rates improve.

 

Don't fall too complacent with this morning's markets and mortgage pricing. There is a good chance of stocks reversing course or extending this morning's gains before the end of the day. In other words, we may see an intraday revision to rates sometime today.

 

Next week has several economic reports that are considered to be moderately to highly important for the markets to digest. Monday's calendar is empty, meaning we can expect weekend headlines to drive trading (if there is any relevant news). The most important reports, including the FOMC minutes, come mid and late week. Look for details on all of the 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
                      

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

www.nmlsconsumeraccess.org
Posted by T. Fanning on May 20th, 2022 8:41 AM

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Hi, I hope you're doing well.

 

Rates had a nice week, ending the week lower. Next week brings us a handful of relevant economic reports for the markets to digest along with another Treasury auction. One of the reports stands out as much more important than the others. Monday has nothing scheduled that we need to be concerned with.*

 

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 Alt-A (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!


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Last Updated: 5/13/22

 

Friday's bond market has opened in negative territory, despite favorable economic news. Stocks are probably contributing to this morning's early bond weakness with gains of 333 in the Dow and 342 in the Nasdaq. The bond market is down 18/32 (2.92%), which should push this morning's mortgage rates higher by approximately .125 of a discount point. If you saw an intraday improvement Thursday, you likely will see a larger increase this morning.

 

Yesterday's 30-year Treasury Bond auction drew a strong demand from investors. We saw bonds improve after results were posted at 1:00 PM ET, leading to a few lenders improving rates intraday. However, a late negative turn in bonds caused some lenders to revise pricing slightly higher before closing.

 

May's preliminary reading to the University of Michigan's Index of Consumer Sentiment was posted at 10:00 AM ET this morning. The index came in at 59.1, well below forecasts of 63.5 and April's final reading of 65.2. The decline indicates surveyed consumers are growing more concerned about their own financial and employment situations. Since waning confidence usually translates into softer consumer spending numbers, we can consider this data to be favorable for bonds and mortgage rates even though it doesn't show it in today's early trading.

 

Next week brings us a handful of relevant economic reports for the markets to digest along with another Treasury auction. One of the reports stands out as much more important than the others. Monday has nothing scheduled that we need to be concerned with. 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
                      

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

www.nmlsconsumeraccess.org

Posted by T. Fanning on May 13th, 2022 10:15 AM

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Happy Friday,

 

The Fed’s raised their benchmark interest rate by .50%, which the market expected. Mortgage interest rates initially acted calm, but rose the next two days, ending the week higher. Next week doesn't have a large number of economic reports scheduled that we need to be concerned with, but the calendar includes two highly important inflation readings and a couple of Treasury auctions that may also influence rates. The week starts off light with nothing of importance scheduled for Monday or Tuesday.*

 

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 Alt-A (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!


Text Description automatically generated with medium confidence

  

Last Updated: 5/6/22

 

Friday's bond market has opened in negative territory despite somewhat uneventful results in today's major economic report. Stocks are extending their sell-off after yesterday's losses pushed the Dow lower by over 1,000 points. The Dow is currently down another 405 points while the Nasdaq has lost 238 points. The bond market is currently down 10/32 (3.06%), which should cause this morning's mortgage rates to be approximately .125 - .250 of a discount point higher than Thursday's early pricing.

 

Today's big economic release was April's Employment report that showed 428,00 new jobs were added to the economy and the unemployment rate held at 3.6% last month. Forecasts were calling for 400,000 jobs and 3.6% unemployment. Neither number can be considered good or bad news for rates. Payrolls were a little higher than expected, but the variance from forecasts is not wide enough to cause alarm.

 

The third headline number was average earnings that came in up 0.3% when forecasts predicted a 0.4% rise. This number is particularly influential on bonds, so the lower than expected increase can be labeled as favorable for mortgage rates. Unfortunately, an upward revision of 0.1% to March's earnings is offsetting the slight miss in April. In other words, the earnings reading is neutral for mortgage pricing.

 

Next week doesn't have a large number of economic reports scheduled that we need to be concerned with, but the calendar includes two highly important inflation readings and a couple of Treasury auctions that may also influence rates. The week starts off light with nothing of importance scheduled for Monday or Tuesday. 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
                      

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

www.nmlsconsumeraccess.org

Posted by T. Fanning on May 6th, 2022 3:01 PM

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TGIF,

 

Rates finally caught a break and ended the week lower. Next week is filled with highly important events and economic data that is expected to cause volatility in the markets. It starts Monday with the release of the ISM manufacturing index and closes with the almighty monthly Employment report. In between there is another FOMC meeting that is widely expected to yield fireworks and other less important reports.*

 

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 Alt-A (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!


Text Description automatically generated with medium confidence

  

Last Updated: 4/29/22

 

Friday's bond market has opened in negative territory following mostly stronger economic data from this morning's batch of reports. Stocks are showing losses with the Dow down 97 points and the Nasdaq down 67 points. The bond market is currently down 7/32 (2.85%), which should cause an increase of approximately .125 of a discount point in this morning's mortgage rates. If you saw an intraday improvement Thursday, you likely will see a larger increase in this morning's pricing.

 

The first of this morning's three economic releases was March's Personal Income and Outlays data at 8:30 AM ET. It revealed a 0.5% increase in income and a 1.1% jump in spending. Both readings exceeded forecasts of 0.4% and 0.6% respectively, signaling stronger economic activity. The key inflation reading (Core PCE) in the report didn't reveal a major surprise. Still, the other headline readings came in stronger than predicted. Accordingly, we have to label the report unfavorable for rates.

 

This morning's second early release was the 1st Quarter Employment Cost Index (ECI) showed that employer costs for wages and benefits rose more than expected during the first three months of the year. The 1.4% rise was stronger than forecasts of 1.1%. Since wage inflation fuels broader inflationary pressures across the economy, we also have to consider this report as a negative for mortgage pricing.

 

April's revised Index of Consumer Sentiment from the University of Michigan came in at 65.2. This was a downward revision from the preliminary reading of 65.7 from two weeks ago. The decline means surveyed consumers felt a little less optimistic about their own financial situations than thought. Because waning confidence often leads to softer levels of consumer spending, we can call this release favorable for mortgage rates even though we have not seen a reaction to the news.

 

Next week is filled with highly important events and economic data that is expected to cause volatility in the markets. It starts Monday with the release of the ISM manufacturing index and closes with the almighty monthly Employment report. In between there is another FOMC meeting that is widely expected to yield fireworks and other less important reports. 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
                      

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

www.nmlsconsumeraccess.org

Posted by T. Fanning on April 29th, 2022 10:23 AM

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Hello, I hope you’ve had a great week.

 

Rates again ended the week higher. Next week has plenty scheduled in terms of relevant economic data. There also are a couple of Treasury auctions that may have a minor impact on trading during afternoon hours midweek. The calendar starts Tuesday with nothing for us to watch set for Monday. There is a possibility of weekend headlines causing a move in rates as the new week starts.*

 

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 Alt-A (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!


Text Description automatically generated with medium confidence

  

Last Updated: 4/22/22

 

Friday's bond market has opened in positive territory following early stock selling. The major indexes look to close the week with losses, pushing the Dow lower by 375 points and the Nasdaq down 27 points. The bond market is currently up 7/32 (2.88%), but heavy selling late Thursday is going to cause this morning's mortgage rates to be approximately .250 - .375 of a discount point higher. If you saw an intraday increase yesterday afternoon, you should see a smaller increase or no change in this morning's rates.

 

There is nothing of importance scheduled for today. This morning's increase in rates is completely a result of heavy selling late yesterday. It was expected that Fed Chairman Powell's comments at the IMF conference would be the catalyst for a move in rates yesterday. However, San Francisco Fed President Mary Daly caused morning losses to get worse before he spoke when she said that there would be multiple FOMC meetings with .500 increases (instead of just one) and went as far as saying a .750 move is a possibility. Those headlines renewed inflation fears in the bond market, leading to yields moving higher. When Chairman Powell's later comments failed to ease those concerns, many lenders started issuing upward revisions to rates during afternoon trading.

 

Next week has plenty scheduled in terms of relevant economic data. There also are a couple of Treasury auctions that may have a minor impact on trading during afternoon hours midweek. The calendar starts Tuesday with nothing for us to watch set for Monday. There is a possibility of weekend headlines causing a move in rates as the new week starts. 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
                      

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

www.nmlsconsumeraccess.org

Posted by T. Fanning on April 22nd, 2022 12:19 PM

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