October 29th, 2021 11:18 AM by T. Fanning
Hello, I hope you’ve had a great week.
We now serve the state of Florida! Let me know if I can be of any help with any buyers/borrowers in either Colorado or Florida!
Rates finally caught a break and ended the week slightly lower. Next week is highly important for bonds and mortgage rates with a calendar that includes the ISM manufacturing index (Monday), an FOMC meeting that may yield a tapering announcement (Wednesday) and the almighty monthly Employment report (Friday). There are also a few moderately important releases throughout the week.*
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!
Last Updated: 10/29/21
Friday's bond market initially opened in negative territory, following suit of overseas trading, before moving back to unchanged soon after trading opened here. Stocks are showing early losses of 22 points in the Dow and 74 points in the Nasdaq. The bond market is currently unchanged (1.57%), but afternoon weakness late Thursday, coupled with early morning weakness in mortgage bonds, should cause an increase of approximately .250 of a discount point in this morning's mortgage rates.
The first of today's three economic releases was September's Personal Income and Outlays report at 8:30 AM ET. It revealed a 1.0% decline in income and a 0.6% rise in spending. The income was much weaker than expected (good news), but the spending increase was stronger than forecasts (bad news). The core PCE index that the Fed relies on as an inflation benchmark matched expectations at up 0.2%. This was the most important of today's three reports. However, the mixed readings cause us to label it as neutral for mortgage rates.
Also early this morning was the release of the 3rd Quarter Employment Cost Index (ECI) that came in at up 1.3%, exceeding predictions of a 0.8% rise. The size of the increase makes the report bad news for bonds and mortgage rates because the index tracks employer costs for wages and benefits. Those rising costs are a sign of wage inflation that easily spreads to other parts of the economy and makes bonds less appealing to investors.
Closing out this week's calendar was the University of Michigan's revised Index of Consumer Sentiment for October. They announced a reading of 71.7 that was slightly higher than the 71.4 preliminary reading from two weeks ago, but not enough of a revision to draw much attention. This index measures consumer willingness to spend by tracking their confidence in their own financial situations. The increase makes the reading technically unfavorable for rates even though it has had no impact on today's pricing.
Next week is highly important for bonds and mortgage rates with a calendar that includes the ISM manufacturing index (Monday), an FOMC meeting that may yield a tapering announcement (Wednesday) and the almighty monthly Employment report (Friday). There are also a few moderately important releases throughout the week. Look for details and expectations 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...Float 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.*
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
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