The Home Loan Mortgage Blog

Weekly Update - 10/18/24

October 18th, 2024 12:23 PM by T. Fanning

Hey there! Wishing you an amazing Friday full of joy and success!

 

Earlier this week, Federal Reserve Governor Christopher Waller suggested future interest rate cuts will be less aggressive, citing concerns that the economy may still be too active despite hopes for a slowdown. Rates wrapped up the week with only some minor adjustments.   

 

It will be busy next week: key bond updates, Monday’s Leading Economic Indicators at 10:00 AM ET, a Treasury auction, Fed talks, and a surge in earnings.

 

We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); Conventional 0% down; 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

 

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


Last Updated: 10/18/24

 

Friday's bond market has opened in positive territory, erasing losses from late yesterday. Stocks are active but mixed with the Dow down 159 points and the Nasdaq up 122 points. The bond market is currently up 6/32 (4.06%), which should keep this morning's mortgage rates close to Thursday's early pricing. If you saw an intraday increase late yesterday, you should see an improvement this morning.

 

This week's economic calendar came to a close with just one minor piece of housing data early this morning. September's Housing Starts report showed a 0.5% decline in new home groundbreakings, nearly matching forecasts. The decline is being attributed to a large drop in multi-family project starts (apartment buildings). Single-family home groundbreakings that are more meaningful to bonds and mortgage rates rose 2.7%. Fortunately, this report doesn't carry a high level of importance in the bond market, limiting its impact on this morning's mortgage pricing.

 

There are also a few Fed-member speaking engagements taking place this morning and midday. The likelihood of one of them causing a strong reaction in the markets is relatively low unless something completely unexpected is said. On a day with little else to drive trading we could see a modest movement in bonds as a result of one of their speeches, but that is not a big concern. We should see a fairly calm day for the bond market and mortgage rates.

 

Next week doesn't have any major economic reports scheduled. There are a handful of relevant reports set to be posted, most of which are considered moderately important to the bond market and mortgage rates. It begins with the Conference Board posting their Leading Economic Indicators for September at 10:00 AM ET Monday. In addition to the data, there is a Treasury auction, another batch of Fed speeches and even more corporate earnings announcements than there were this week. 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.

 

*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
                                                  

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FL Company License: MBR4416 | FL License: LO89221

 

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Posted by T. Fanning on October 18th, 2024 12:23 PM

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