The Home Loan Mortgage Blog

Weekly Update - 10/30/20

October 30th, 2020 12:22 PM by T. Fanning



Happy Halloween Eve! I hope you have a great holiday and weekend!

Rates had a nice week, ending the week lower. 
Next week has several big events scheduled, starting with the ISM manufacturing index late Monday morning and closing with the almighty monthly Employment report Friday. In between there are a couple of moderately important economic reports, an FOMC meeting and of course the Presidential election.*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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.hlmcolorado.com/mortgageprograms

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

Last Updated: 10/30/20

Friday's bond market has opened in negative territory following stronger than expected economic data. Stocks are also in negative territory with the Dow down 99 points and the Nasdaq down 144 points. The bond market is currently down 4/32 (0.84%), which should push this morning's mortgage rates higher by ,125 of a discount point compared to Thursday's early pricing.

The first of this morning's three economic releases was September's Personal Income and Outlays report at 8:30 AM ET. It showed that income rose 0.9% while spending increased 1.4%. Both readings exceeded expectations of 0.3% and 1.0% respectively, indicating consumers had more money to spend than thought and did spend it. Because those increases are a sign of stronger economic activity, they are bad news for bonds and mortgage rates. However, a key inflation reading that the Fed relies on during their FOMC meetings matched forecasts. It is that reading that may be helping to boost bonds during early trading.

Also at 8:30 AM ET was the release of the 3rd Quarter Employment Cost Index (ECI). It revealed a 0.5% increase, falling short of the 0.6% that was forecasted. We can consider this bit of data favorable for bonds and mortgage pricing because it points towards lower costs for wages and benefits, which eases inflation concerns.

The final report of the day was the University of Michigan's revised Index of Consumer Sentiment for October. They announced a reading of 81.8 that was up from the preliminary reading and slightly higher than expected. This means surveyed consumers felt better about their own financial situations than previously thought. Rising confidence usually translated into higher levels of consumer spending. Therefore, we should consider the data slightly negative for rates.

Next week has several big events scheduled, starting with the ISM manufacturing index late Monday morning and closing with the almighty monthly Employment report Friday. In between there are a couple of moderately important economic reports, an FOMC meeting and of course the Presidential election. 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...
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.*

*http://www.hlmcolorado.com/DailyRateAdvisory




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on October 30th, 2020 12:22 PM

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