The Home Loan Mortgage Blog

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TGIF!

 

Rates caught a break today, erasing a majority of the increase incurred earlier in the week. Overall, rates ended a tad higher versus last Friday’s numbers. Monday is the only day of the week without at least one thing scheduled. The most important items are set for midweek, meaning we should see the most movement in rates those days.*

 

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: 1/21/22

 

Friday's bond market has opened in positive territory again, keeping mortgage rates heading the right direction for now. Stocks are in selling mode with the Dow down 188 points and the Nasdaq down 227 points. The bond market is currently up 20/32 (1.74%), which should improve this morning's mortgage rates by approximately .125 - .250 of a discount point.

 

December's Leading Economic Indicators (LEI) was today's only semi-relevant data. The Conference Board announced a 0.8% rise in the indicators, meaning they are predicting moderate to strong growth in the economy over the next several months. Generally speaking, this is bad news for the bond market and mortgage rates. However, the rise matched forecasts, preventing an impact on this morning's pricing.

 

Next week starts off light in terms of scheduled events that may affect mortgage rates, but the mid and latter days bring us some highly influential economic releases and FOMC activities. Some of the important items scheduled next week include the first FOMC meeting of the year, the initial 1st Quarter Gross Domestic Product reading (benchmark of economic activity) in addition to a few more economic reports and a couple of Treasury auctions.

 

Monday is the only day of the week without at least one thing scheduled. The most important items are set for midweek, meaning we should see the most movement in rates those days. 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.
*

 

*http://www.hlmcolorado.com/DailyRateAdvisory
              

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 January 21st, 2022 3:04 PM

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Hi, happy Friday.

 

Rates were quiet this week, ending very similar to last Friday's numbers. Next week doesn't have too much scheduled that is likely to drive mortgage rates. The week starts with the markets closed Monday for the Martin Luther King Jr. holiday. We only have a couple of monthly economic reports set to be posted, with the majority being housing related. There also is a 20-year Treasury Bond auction midweek that could affect rates during afternoon trading one day.*

 

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: 1/14/22

 

Friday's bond market has opened well in negative territory despite quite favorable results from today's economic reports. Stocks are mixed with the Dow down 161 points and the Nasdaq up 41 points. The bond market is currently down 16/32 (1.75%), which should push this morning's mortgage rates higher slightly. Preventing more of an increase are gains from late yesterday. If you saw an intraday improvement before closing, you may see a larger increase this morning.

 

The first of today's batch of economic reports was the highly important Retail Sales report for December. The Commerce Department announced a very weak 1.9% decline in consumer sales, falling well short of the unchanged that was expected. Even more surprising was the 2.3% drop in sales if more volatile and costly auto transactions are excluded, when a 0.2% rise was predicted. There are theories floating as to why this happened (lack of supply in stores is one), but there is no debating that consumers spent far less last month than many had thought and great news for bonds and mortgage rates. Because consumer spending makes up two-thirds of the U.S. economy, this should be concerning in how it may affect overall economic growth in the coming months, supporting the thought process that the worst of this spike in rates is likely behind us.

 

Next was December's Industrial Production data at 9:15 AM ET. It revealed a 0.1% decline in output at U.S. factories, mines and utilities last month. Forecasts were calling for a 0.3% increase in production. As a sign of weaker than expected manufacturing activity, we can label this report as favorable for mortgage rates also.

 

The final report of the week was January's preliminary reading of the University of Michigan's Index of Consumer Sentiment at 10:00 AM. It came in at 68.8, down from December's final 70.6. The lower reading means surveyed consumers don't feel as confident about their own financial situations this month as they did last month. Waning confidence usually translates into softer consumer spending levels (see this morning's Retail Sales report). Therefore, we can consider the report slightly favorable for bonds and mortgage pricing.

 

Next week doesn't have too much scheduled that is likely to drive mortgage rates. The week starts with the markets closed Monday for the Martin Luther King Jr. holiday. We only have a couple of monthly economic reports set to be posted, with the majority being housing related. There also is a 20-year Treasury Bond auction midweek that could affect rates during afternoon trading one day. 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.*

 

*http://www.hlmcolorado.com/DailyRateAdvisory
              

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 January 14th, 2022 12:33 PM

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Happy Friday! I hope you had a great New Years!

 

It was not a great week of news concerning mortgage rates. FHFA (Fannie/Freddie) announced that pricing for second homes will be increasing, looking more like pricing on investment properties. Expect to see the changes in a month or so.

 

As for rates this week, rates jumped from last Friday’s numbers. Closing out this week's calendar was the revised University of Michigan Index of Consumer Sentiment for December at 10:00 AM ET. Next week brings us more important economic data that can heavily influence the financial markets and mortgage rates. There is nothing of importance scheduled for Monday, but the rest of the week has a couple of big inflation indexes and Treasury auctions, a headline consumer spending reading and a few other reports that will draw some attention. It is safe to assume that it will be another very active week for 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 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: 1/7/22

 

Friday's bond market has opened in negative territory following mixed results in this morning's major economic release. Stocks are having a minimal reaction to the data, pushing the Dow down 12 points and the Nasdaq up 53 points. The bond market is currently down 9/32 (1.76%), which should cause an increase of approximately .250 of a discount point in this morning's rates.

 

December's Employment report was released at 8:30 AM ET this morning, giving us key readings about the employment sector. It revealed that the unemployment rate fell to a lower than expected 3.9% last month while only 199,000 new jobs were added to the economy. The headline payroll number was well below forecasts of 420,000 and smaller than November's revised 249,000 jobs. The lower unemployment rate is bad news for bonds and mortgage rates, but the much weaker payroll number should be considered very good news.

 

Likely fueling this morning's bond weakness is a much stronger than forecasted increase in average earnings. Today's report showed a 0.6% jump when only 0.4% was expected. Rapidly rising wages fuel broader inflation that is a major concern in the economy currently. What was supposed to be only a temporary inflationary issue now looks to be a bigger problem than many had thought. Therefore, adding fuel to the fire is causing another negative day for bonds and rates.

 

Next week brings us more important economic data that can heavily influence the financial markets and mortgage rates. There is nothing of importance scheduled for Monday, but the rest of the week has a couple of big inflation indexes and Treasury auctions, a headline consumer spending reading and a few other reports that will draw some attention. It is safe to assume that it will be another very active week for rates.

 

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.*

 

*http://www.hlmcolorado.com/DailyRateAdvisory
             

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 January 7th, 2022 11:26 AM

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Happy New Years Eve! Have a great night and be safe!

 

Rates ended the week mixed. Closing out this week's calendar was the revised University of Michigan Index of Consumer Sentiment for December at 10:00 AM ET. Next week has plenty more scheduled for the markets to digest than this week did. There is nothing of importance scheduled for Monday, but every other day has at least one item set for release. Two of the economic reports, December's ISM index and Employment report are expected to heavily influence the markets. The minutes from this month's FOMC meeting also carry the potential to do so.*

 

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: 12/31/21

 

Friday's bond market has opened in negative territory as the year quietly winds down. Stocks are showing early losses with the Dow down 72 points and the Nasdaq down 30 points. The bond market is currently down 3/32 (1.51%), but gains late yesterday should allow this morning's mortgage rates to be approximately .125 of a discount point lower than Thursday's early pricing.

 

There is nothing on today's calendar that we need to be concerned with. We are seeing light pre-holiday trading, meaning we should not put much weight into any improvements or increases in mortgage pricing today. We should see normal trading patterns return next week.

 

The bond market will close at 2:00 PM ET today in recognition of the New Year's Day holiday while stocks have a full day of trading. All markets will reopen for regular trading hours Monday.

 

Next week has plenty more scheduled for the markets to digest than this week did. There is nothing of importance scheduled for Monday, but every other day has at least one item set for release. Two of the economic reports, December's ISM index and Employment report are expected to heavily influence the markets. The minutes from this month's FOMC meeting also carry the potential to do so. Look for details on all of next week's activities in Sunday evening's weekly preview.

 

We would like to wish all of our readers and their families a safe and wonderful holiday!

 

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.*

 

*http://www.hlmcolorado.com/DailyRateAdvisory
             

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 December 31st, 2021 2:30 PM

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Description automatically generated

 

Merry Christmas Eve! I hope you have a great Holiday!

 

Other than the Jumbo 30-year fixed program, rates ended the week higher. Closing out this week's calendar was the revised University of Michigan Index of Consumer Sentiment for December at 10:00 AM ET. This consumer confidence index came in at 70.6, up slightly from the initial reading of 70.4 from two weeks ago. The small revision is not enough to draw much attention, preventing it from having an impact on today's mortgage pricing. The bond market will close at 2:00 PM ET today ahead of tomorrow's recognition of the Christmas Day holiday. Stocks will trade for a full day today, but will be closed tomorrow along with the bond and other financial markets. All will reopen Monday for regular trading.*

 

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: 12/23/21

 

Thursday's bond market has opened in negative territory following mixed economic news and thin trading ahead of the holiday. Stocks are showing gains of 199 points in the Dow and 46 points in the Nasdaq. The bond market is currently down 12/32 (1.49%), but gains late yesterday should keep this morning's mortgage rates fairly close to Wednesday's early levels.

 

Today's batch of economic releases started with last week's unemployment figures at 8:30 AM ET that showed 205,000 new claims for benefits were made last week. This was unchanged from the previous week's revised total and nearly pegged forecasts. The lack of a surprise number and the fact this is just a weekly update allows us to consider the data neutral for mortgage rates.

 

November's Personal Income and Outlays data was also posted at 8:30 AM this morning. It revealed that personal income rose 0.4% while spending increased 0.6%. The income reading was slightly lower than expectations of 0.5%, meaning consumers had less money to spend than thought. However, the more important spending reading matched predictions. The third headline number in this report is the core PCE index that the Fed relies on as an indicator of true inflation. The month over month reading came in at up 0.5%, higher than the 0.4% that analysts were expecting. Furthermore, the year over year increase also exceeded forecasts, hinting that inflation in the economy is a bit stronger than many had thought. The mixed readings cause us to label the report slightly negative for mortgage rates.

 

The final early morning release was November's Durable Goods Orders report that revealed new orders at U.S. factories for big-tickets products rose 2.5% last month, beating predictions of a 1.5% jump. Even a secondary reading that excludes more volatile and costly airplane and other related orders came in a little higher than expected. While this was a sizable variance from forecasts and shows manufacturing sector strength, it is not nearly as relevant in this report as it would be in many other releases. This is because this data is known to be extremely volatile from month to month, so large swings are common.

 

New Home Sales data for November was posted at 10:00 AM ET, giving us a small sign of housing sector strength. The Commerce Department announced a 12.4% jump in sales of newly constructed homes. While that sounds like a bad report for bonds and mortgage rates, the spike is actually a result of a significant downward revision to October's sales. The number of sales in November was noticeably lower than what was forecasted before the correction to October's sales. That allows us to consider the report to be favorable for mortgage rates. Unfortunately, it tracks only a small portion of all home sales and does not carry much significance.

 

Closing out this week's calendar was the revised University of Michigan Index of Consumer Sentiment for December at 10:00 AM ET. This consumer confidence index came in at 70.6, up slightly from the initial reading of 70.4 from two weeks ago. The small revision is not enough to draw much attention, preventing it from having an impact on today's mortgage pricing.


The bond market will close at 2:00 PM ET today ahead of tomorrow's recognition of the Christmas Day holiday. Stocks will trade for a full day today, but will be closed tomorrow along with the bond and other financial markets. All will reopen Monday for regular trading. Accordingly, there will be no update to this report tomorrow, but we will address next week's light schedule in Sunday evening's weekly preview.

 

We would like to wish you and yours a wonderful and safe holiday!

 

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.
*

 

*http://www.hlmcolorado.com/DailyRateAdvisory
            

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 December 24th, 2021 5:11 PM

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