October 8th, 2021 2:42 PM by T. Fanning
Hi, I hope you had a nice 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!
Interests rates ended the week higher. There is at least one event scheduled for each day after Monday, with several days having multiple items that have the potential to move rates. There is a strong possibility of it being a very active week for the financial and mortgage markets.*
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: 10/8/21
Friday's bond market has opened in negative territory following mixed results in today's major economic release. Stocks are showing early gains of 64 points in the Dow and 12 points in the Nasdaq. The bond market is currently down 8/32 (1.60%), which with yesterday's late weakness should cause this morning's rates to be approximately .125 of a discount point.
This week's major economic release was September's Employment report at 8:30 AM ET. It revealed the U.S. unemployment rate fell from 5.2% to 4.8% last month while only 194,000 jobs were added to the economy. Forecasts were 5.1% for the unemployment rate and 450,000 payrolls. The unemployment rate was lower than expected (bad news) but the smaller payroll number is good news.
Likely causing this morning's bond weakness is the 0.6% jump in average earnings that exceeded expectations of 0.4%. The variance in this reading is fairly significant and raises wage inflation concerns that easily spreads to other parts of the economy. Since inflation is the number one nemesis of the bond market and makes securities less appealing to investors, we need to consider this portion of the report very bad news for mortgage rates.
Next week will be shortened for the bond market due to the Columbus Day closure Monday, although stocks will be open for trading that day. There is plenty scheduled next week that is likely to influence mortgage rates. The calendar includes two important inflation readings, a key consumer spending report, a couple of Treasury auctions and the minutes from the last FOMC meeting.
There is at least one event scheduled for each day after Monday, with several days having multiple items that have the potential to move rates. There is a strong possibility of it being a very active week for the financial and mortgage markets. 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...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.*
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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