The Home Loan Mortgage Blog

Weekly Update - 1/7/22

January 7th, 2022 11:26 AM by T. Fanning

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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!


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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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