October 23rd, 2023 11:42 AM by T. Fanning
Hi, I hope you had a good weekend.
Rates got crushed last week due to some better-than-expected economic reports. The current sentiment is rates will stay higher a little longer than previously expected. Overall, Thursday is the best candidate for most active day for rates due to the initial GDP reading and Durable Goods Orders data both being released. Corporate earnings season is in full speed this week, meaning stock movement may also influence bond trading and mortgage pricing any day. The calmest day for rates may end up being tomorrow. We should see rates move quite a bit this week with intraday revisions a possibility. If still floating an interest rate and closing in the near future, it would be prudent to keep an eye on the markets.*
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); 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
Last Updated: 10/23/23
Monday's bond market has opened in negative territory, continuing the recent upward momentum in yields. Stocks are also starting the week with early losses, pushing the Dow lower by 45 points and the Nasdaq down 22 points. The bond market is currently down 6/32 (4.93%), which should cause an increase in this morning's mortgage rates of approximately .250 of a discount point over Friday's morning pricing.
There is nothing of importance scheduled for today or tomorrow. This means bonds will likely remain in this downward spiral that has pushed the benchmark 10-year Treasury Note yield close to 5.00%, at least until later in the week. With little scheduled to derail the selling, it is safe to assume that pressure in the bond market and mortgage rates will remain for the next couple of days.
There are five monthly and quarterly economic reports set for release this week, in addition to two Treasury auctions that have the potential to move rates slightly. The most important data comes later in the week, but the other reports carry enough significance to change mortgage rates also. Throw in corporate earnings announcements and a few Fed speaking engagements and it is safe to assume there will be a fair amount of movement in the markets and mortgage pricing this week.
Overall, Thursday is the best candidate for most active day for rates due to the initial GDP reading and Durable Goods Orders data both being released. Corporate earnings season is in full speed this week, meaning stock movement may also influence bond trading and mortgage pricing any day. The calmest day for rates may end up being tomorrow. We should see rates move quite a bit this week with intraday revisions a possibility. If still floating an interest rate and closing in the near future, it would be prudent to keep an eye on the markets.
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.*
*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
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