October 21st, 2022 1:35 PM by T. Fanning
Hi, happy Friday,
Rates continued their upward climb in anticipation of the Feds raising their benchmark rate. Next week has plenty scheduled that is of interest to the bond and mortgage markets. It starts with nothing of importance set for Monday, meaning we can expect weekend news to have the biggest influence on rates that day. The rest of the week has economic releases that include the highly important initial 3rd Quarter Gross Domestic Product (GDP) reading and September's Durable Goods Orders reports. There are also a couple of Treasury auctions that have the potential to impact rates during afternoon trading midweek.*
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 Non-QM (stated income, verified assets for self-employed borrowers)! To see a detailed list of programs, visit our website: www.homeloanmortgageco.com/mortgageprograms
Last Updated: 10/21/22
Friday's bond market has opened in negative territory but is well off overnight lows. Stocks are rallying with the Dow up 348 points and the Nasdaq up 53 points. The bond market is currently down 3/32 (4.24%) after touching 4.30% overnight. However, another round of afternoon selling yesterday is going to cause this morning's rates to be approximately .250 of a discount point higher than Thursday's early pricing. If you saw an intraday increase in rates yesterday, you may see a small improvement this morning.
Today doesn't have anything scheduled that we need to be concerned with. There is concern about the direction of bond yields and mortgage rates with the benchmark 10-year Treasury Note yield hovering around its highest point since 2008. The rebound from that threshold this morning could be a sign of resistance, meaning we may see yields retreat a little today. This would be favorable for borrowers because mortgage rates tend to track bond yields. On a day with little else to digest, this is an optimistic sign that we can focus on for the moment.
Next week has plenty scheduled that is of interest to the bond and mortgage markets. It starts with nothing of importance set for Monday, meaning we can expect weekend news to have the biggest influence on rates that day. The rest of the week has economic releases that include the highly important initial 3rd Quarter Gross Domestic Product (GDP) reading and September's Durable Goods Orders reports. There are also a couple of Treasury auctions that have the potential to impact rates during afternoon trading midweek. 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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