January 19th, 2024 1:17 PM by T. Fanning
Hello, I hope you’re doing well and had a good week!
Rates ended the week higher due to fears the Feds might not cut rates as early as what was predicted. Next week brings us a large number of economic reports and other relevant events that are likely to affect mortgage rates. Unlike most, there is a piece of data scheduled this coming Monday that we will be watching. December's Leading Economic Indicators (LEI) will start the week's activities at 10:00 AM ET. The calendar includes a few reports that are considered to be highly important to the markets and mortgage rates, such as the initial 4th quarter Gross Domestic Product (GDP) number and the Fed's preferred inflation reading. We will get the more influential releases later in the week.*
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); Conventional, 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: 1/19/24
Friday's bond market has opened in negative territory following mixed results in this morning's economic data. Stocks are showing early gains of 58 points in the Dow and 56 points in the Nasdaq. The bond market is currently down 14/32 (4.19%), but gains late yesterday are keeping this morning's increase in mortgage rates to approximately .125 of a discount point.
The National Association of Realtors announced late this morning that home resales fell 1.0% last month, falling to their weakest level since August 2010. This was a slightly larger decline than analysts were expecting, indicating the housing sector remains troubled. Since bonds tend to thrive in weaker economic conditions, we can label this report good news for mortgage rates.
Also posted at 10:00 AM ET was January's preliminary reading to the University of Michigan's Index of Consumer Sentiment. It came in much stronger than expected, meaning surveyed consumers felt a lot better about their own financial and employment situations than many had thought. The reading was announced at 78.8, blowing past forecasts of 68.8 and December's 69.7. Because confident consumers are more likely to make a major purchase in the near future and consumer spending makes up over two-thirds of the U.S. economy, this report is bad news for mortgage rates. Even though both of this morning's reports are considered moderately important, the size of the variance in this index is fueling this morning's bond weakness.
Next week brings us a large number of economic reports and other relevant events that are likely to affect mortgage rates. Unlike most, there is a piece of data scheduled this coming Monday that we will be watching. December's Leading Economic Indicators (LEI) will start the week's activities at 10:00 AM ET. The calendar includes a few reports that are considered to be highly important to the markets and mortgage rates, such as the initial 4th quarter Gross Domestic Product (GDP) number and the Fed's preferred inflation reading. We will get the more influential releases later in the week. Look for details on all of the scheduled mortgage-relevant events 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
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FL Company License: MBR4416 | FL License: LO89221
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