The Home Loan Mortgage Blog



Hello, I hope you've had a good start to the year.

Rates were mixed for the third week in a row. 
Next week brings us the release of a few important economic releases including two inflation indexes and a highly relevant consumer spending report. In addition to the data, there are also a couple of Treasury auctions that have the potential to affect mortgage rates midweek. There is nothing that we need to be concerned about scheduled for Monday and the first important economic data comes Wednesday.*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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.hlmcolorado.com/mortgageprograms

As always, please let me know if I can help you/friends/family/potential buyers/borrowers!                

Last Updated: 1/8/21

Friday's bond market has opened in negative territory again following mixed results in this morning's key economic report. Stocks are in positive ground with the Dow up 39 points and the Nasdaq up 118 points. The bond market is currently down 5/32 (1.09%), which should push this morning's mortgage rates higher by approximately .125 of a discount point if comparing to Thursday's early pricing.  

Today's big economic news came from December's Employment report. It showed the unemployment rate held steady at 6.7% but that 140,000 jobs were lost during the month when analysts were expecting to see an increase of 80,000. The payroll number supports the theory that the employment sector recovery has lost momentum and is still in serious trouble. Because this is a sign of significant economic weakness, we can consider the data very good news for bonds and mortgage rates even though there was a sizable upward revision to November's payroll number. However, it also should add fuel to the campaign for another stimulus package from Congress that could hurt bonds in the long run.  

Average hourly earnings is the third headline number that we address from this report. It revealed that earnings jumped 0.8% last month, greatly exceeding expectations. Rapidly rising wages is an inflationary concern that makes bonds less appealing to investors. Accordingly, we should label this reading as bad news for mortgage rates.  

Overall, we got some good and some bad from this morning's report. Bonds were weaker during overnight and early morning trading before recovering those losses immediately after the report was released. Unfortunately, it was short-lived, and we again find ourselves with bond losses and slightly higher mortgage rates this morning.  

Next week brings us the release of a few important economic releases including two inflation indexes and a highly relevant consumer spending report. In addition to the data, there are also a couple of Treasury auctions that have the potential to affect mortgage rates midweek. There is nothing that we need to be concerned about scheduled for Monday and the first important economic data comes Wednesday. 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




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on January 8th, 2021 2:39 PM


Hello, I hope you have a good and safe New Years.

Rates were again mixed, but with minimal changes. 
Next week has a fairly large number of relevant economic releases scheduled that the markets will be watching. Next week has much more scheduled for the markets to digest than this week did. It starts with the ISM manufacturing index Tuesday and closes with the almighty monthly Employment report Friday morning. Monday has nothing of relevance, so we can expect headlines over the long weekend to drive trading 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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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.hlmcolorado.com/mortgageprograms

As always, please let me know if I can help you/friends/family/potential buyers/borrowers!                

Last Updated: 12/31/20

Thursday's bond market has opened in positive territory despite unfavorable economic data. Stocks are nearly flat with the Dow down 5 points and the Nasdaq down 6 points. The bond market is currently up 2/32 (0.92%), which should improve this morning's mortgage rates by approximately .125 of a discount point.  

This morning's release of last week's unemployment figures showed that 787,000 new claims for benefits were filed during the week. This was lower than expectations and down from the previous week's revised 806,000 claims, meaning the employment sector was a bit stronger than expected last week. Because claims were lower than predicted, we should consider the data neutral to slightly negative for mortgage rates. Fortunately, with the number still significantly higher than when the pandemic started, traders appear to be shrugging off the news this morning.  

The bond market is closing at 2:00 PM ET today and will be closed tomorrow for the New Year's Day holiday. Stocks will trade a full day today and will be closed tomorrow also. All markets will reopen for regular trading Monday morning. We sometimes see a little pressure in bonds before these long weekends as traders look to protect themselves over the extended closing. It shouldn't lead to a noticeable move in rates but is worth noting.  

Next week has much more scheduled for the markets to digest than this week did. It starts with the ISM manufacturing index Tuesday and closes with the almighty monthly Employment report Friday morning. Monday has nothing of relevance, so we can expect headlines over the long weekend to drive trading 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... 
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




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on December 31st, 2020 12:41 PM


Hi, I hope you had a great Christmas.

Rates have begun the week mixed from Friday, 12/18's numbers. 
Next week has a fairly large number of relevant economic releases scheduled that the markets will be watching. This week has nothing scheduled that makes it possible to label any particular day more or less important for mortgage rates. With exception to year-end trading, we should see a relatively calm week in the bond market and mortgage pricing. Still, it would be prudent to keep an eye on them if still floating an interest rate and closing in the near future as they can get active without warning.*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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.hlmcolorado.com/mortgageprograms

As always, please let me know if I can help you/friends/family/potential buyers/borrowers!               

Last Updated: 12/28/20

Monday's bond market has opened in negative territory, apparently in response to President Trump signing the government funding and coronavirus aid bill last night. Stocks are showing early gains of 250 points in the Dow and 65 points in the Nasdaq. The bond market is currently down 10/32 (0.95%), but fortunately gains from late Thursday should help keep this morning's mortgage rates nearly unchanged. The financial and mortgage markets were closed Friday for Christmas Day.

News that President Trump did indeed sign the government funding and coronavirus aid bill last night is the apparent force behind today's negative open in bonds. The fact that the presented bill was signed without the higher payments he demanded a few days ago should be, by theory at least, favorable news for bonds and mortgage rates. A larger amount in the package would mean more support for the economy and more debt issued to fund it, both negatives for the bond market. However, the reaction this morning is the opposite with stocks up, bonds down and what would have been mortgage rates higher had it not been for strength as the markets were closing for the holiday last week.

There is no relevant economic data set for release today, but we do have the 5-year Treasury Note auction to watch this afternoon. These sales influence general bond market sentiment, not mortgage pricing directly. If there is little interest in the securities, we could see broader selling in the bond market that possibly leads to an upward revision in mortgage rates. On the other hand, strong investor demand usually makes bonds more attractive to investors, translating into slightly lower mortgage rates. Results of the sale will be posted at 1:00 PM ET. If there is a reaction, it will be minor and should come shortly after those results are posted. This scenario will repeat itself tomorrow for the 7-year Note auction.

The remainder of this holiday-shortened week doesn't bring us much to be concerned with either. It has no monthly or quarterly economic reports scheduled that usually have an influence on rates. Besides the two Treasury auctions reference above, the only other scheduled event that we will be watching is the weekly unemployment update Thursday morning.

This week has nothing scheduled that makes it possible to label any particular day more or less important for mortgage rates. With exception to year-end trading, we should see a relatively calm week in the bond market and mortgage pricing. Still, it would be prudent to keep an eye on them if still floating an interest rate and closing in the near future as they can get active without warning.

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




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on December 28th, 2020 1:23 PM


Hey, one week until Christmas!

Rates ended the week the lower. 
Next week has a fairly large number of relevant economic releases scheduled that the markets will be watching. It will be a holiday-shortened week with the bond market closing early Thursday afternoon and closed for the Christmas Day holiday Friday. The stock markets will also close early Thursday and reopen the following Monday morning. None of the week's reports are set for Monday, meaning the markets will have plenty to digest over less than three trading days (with exception to a possible weekend stimulus agreement).*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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.hlmcolorado.com/mortgageprograms

As always, please let me know if I can help you/friends/family/potential buyers/borrowers!                

Last Updated: 12/18/20

Friday's bond market has opened in positive territory despite stronger than expected economic data and early stock losses. The Dow is currently down 90 points while the Nasdaq has lost 19 points. The bond market is currently up 4/32 (0.92%), but weakness late yesterday is going to keep this morning's mortgage rates close to Thursday's early pricing.

Today's sole economic release was November's Leading Economic Indicators (LEI) at 10:00 AM ET. The Conference Board, which is a New York-based business research group and not a governmental agency, announced a 0.6% rise in their LEI. This was a bit stronger than expected, hinting at stronger economic activity. Fortunately, this report does not carry a high level of significance, preventing a negative impact on this morning's rates.

Another stimulus package agreement still eludes Congress as of this morning, meaning they will need to pass another short-term funding bill to keep the federal government open past tonight's deadline. I believe we could see an agreement possibly come this weekend. However, it wouldn't affect mortgage rates until Monday morning. Generally speaking, another round of stimulus for citizens and businesses should cause a positive reaction in stocks and a negative move in bonds that would likely lead to an increase in mortgage rates. Just how much of an increase depends on the size of the package and what it includes. We shouldn't be surprised that more stimulus is coming at this point, but it is safe to assume that we will get some type of knee-jerk reaction once an agreement is reached.

Next week has a fairly large number of relevant economic releases scheduled that the markets will be watching. It will be a holiday-shortened week with the bond market closing early Thursday afternoon and closed for the Christmas Day holiday Friday. The stock markets will also close early Thursday and reopen the following Monday morning. None of the week's reports are set for Monday, meaning the markets will have plenty to digest over less than three trading days (with exception to a possible weekend stimulus agreement). 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




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on December 18th, 2020 12:30 PM


Hey, I hope you're enjoying the snow!

Rates ended the week a tad lower from last Friday's numbers. 
Next week has a handful of relevant economic releases scheduled that may influence mortgage rates. Next week brings us very few economic reports for the markets to digest, but one is considered to be highly important to the financial and mortgage markets. In addition to the limited economic calendar, there is the final FOMC meeting of the year taking place that will also include revised economic projections from the Fed. The week starts off light with nothing of importance scheduled the early days though.*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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.hlmcolorado.com/mortgageprograms

As always, please let me know if I can help you/friends/family/potential buyers/borrowers!                

Last Updated: 12/11/20

Friday's bond market has opened in positive territory with stocks showing losses and fears of a government shutdown take centerstage. Early stock weakness has the Dow down 54 points and the Nasdaq down 53 points. The bond market is currently up 7/32 (0.88%), which should improve this morning's mortgage rates slightly if comparing to Thursday's early pricing.

Yesterday's 30-year Treasury Bond auction went much better than Wednesday's 10-year Note sale with the benchmarks showing a noticeably stronger interest in the securities. The results appear to have contributed to yesterday's afternoon bond gains but did not lead to widespread intraday improvements to mortgage rates.

November's Producer Price Index (PPI) was posted at 8:30 AM ET this morning, revealing a 0.1% rise in the overall and core data readings. Both were expected to show a 0.2% increase, meaning inflationary pressures at the producer level of the economy were a little softer than thought. Since rising inflation makes bonds less appealing to investors, we can consider the data favorable for the bond market and mortgage rates.

December's preliminary reading to the University of Michigan's Index of Consumer Sentiment was released at 10:00 AM ET. It came in higher than expected at 81.4, indicating surveyed consumers felt better about their own financial situations than analysts were predicting. Because stronger sentiment usually means consumers are more apt to spend, the surprise increase is bad news for mortgage rates.

Also worth noting is a possible government shutdown at midnight tonight if Congress fails to pass a short-term government funding bill. It looked as if enough progress had been made earlier in the week that this situation would have easily been averted. Late objections about the Continuing Resolution in the Senate raises the possibility of the government shutting tonight. The Continuing Resolution is the temporary funding bill to keep the government open for another week to allow the parties more time to negotiate a final package.

Generally speaking, another shutdown would be bad news for stocks, especially when the current status of the economy is taken into consideration. A shutdown means no paychecks for government employees and contractors. It also shuts down federal agencies related to the mortgage industry such as FHA staff and IRS employees that are needed for income verification as part of the underwriting process. While the theory that bad news for stocks is good news for bonds and mortgage rates may still apply here, it will certainly be a difficult time to try and close on a home purchase or refinance if the government does shut tonight. Hopefully, a resolution can be made today to avoid the shutdown, or at the very least get it done over the weekend.

Next week brings us very few economic reports for the markets to digest, but one is considered to be highly important to the financial and mortgage markets. In addition to the limited economic calendar, there is the final FOMC meeting of the year taking place that will also include revised economic projections from the Fed. The week starts off light with nothing of importance scheduled the early days though. 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




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on December 11th, 2020 12:53 PM

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