January 13th, 2023 4:29 PM by T. Fanning
Hello, I hope you had a great week.
Rates had another nice week, ending near four-month lows. Next week has plenty scheduled that may influence mortgage rates, including another important inflation index and a key measure of consumer spending. The financial and mortgage markets will be closed Monday for the Martin Luther King Jr. holiday. Activities start Wednesday with the release of both of those reports and a couple other events.*
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 can also do non-traditional programs! To see a detailed list of programs, visit our website: www.homeloanmortgageco.com/mortgageprograms
Last Updated: 1/13/23
Friday's bond market has opened in negative territory following stronger than expected economic news. Stocks are showing losses of 59 points in the Dow and 40 points in the Nasdaq. The bond market is currently down 3/32 (3.45%), but strength yesterday should still allow an improvement in this morning's mortgage rates of approximately .125 of a discount point. If you saw an intraday improvement yesterday, you may see an increase in this morning's pricing to reflect this morning's weakness.
Yesterday's 30-year Treasury Bond auction drew a fairly strong demand from international investors. That, along with other benchmarks that we use to gauge the sale, indicate a good demand for long-term U.S. securities. Bonds had already improved from morning levels by the time results of the auction were posted at 1:00 PM ET but made another move higher after they were announced. The post-auction improvement caused more lenders to issue an intraday downward revision to mortgage pricing before the end of the day.
Today's only relevant economic data was the University of Michigan's initial Index of Consumer Sentiment for January at 10:00 AM ET. They announced a reading of 64.6 that was higher than the expected 60.2 and an increase from December's 59.7. The increase means surveyed consumers felt better about their own financial conditions than they did last month. Since rising confidence usually translates into stronger levels of consumer spending that fuels economic growth, we have to consider the data negative for bonds and mortgage rates.
Next week has plenty scheduled that may influence mortgage rates, including another important inflation index and a key measure of consumer spending. The financial and mortgage markets will be closed Monday for the Martin Luther King Jr. holiday. Activities start Wednesday with the release of both of those reports and a couple other events. Look for details on all of 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... 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
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