The Home Loan Mortgage Blog

Regardless of your stance, we can all celebrate the end of political ads, emails, texts, and phone calls! Hope your week has been great! And a big shout out to all the Veterans out there! Thank you for all you've done and do!

It was a hectic week with the election and the FOMC meeting. The Fed cut rates by 0.25%, but inflation concerns linger. After election results seemed evident, bond yields jumped. The next morning, mortgage rates hit a monthly high but fell back to their lowest since October 25th within two days. Not an extraordinary rewind, but far better than a rise we’ve been recently experiencing.   

Next week features important economic reports impacting financial and mortgage markets. The bond market is closed Monday for Veteran's Day, but stocks remain open. Key events include influential inflation data on Wednesday and Thursday, with consumer spending figures on Friday. Following the recent FOMC meeting, Fed members can speak publicly, and several are scheduled to do so throughout the week.

We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); Conventional 0% down; 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: 11/8/24

Friday's bond market has opened in positive territory despite unfavorable economic data. Stocks are looking to close this week with further gains of 169 points in the Dow and 15 points in the Nasdaq. The bond market is currently up 11/32 (4.29%), which should improve this morning's mortgage rates by approximately .250 of a discount point compared to Thursday's early pricing.

Today's sole relevant economic report was November's Index of Consumer Sentiment at 10:00 AM ET from the University of Michigan. They announced a reading of 73.0 that was higher than forecasts of 70.9 and up from October's 70.5. The rise in the index means surveyed consumers felt better about their own financial situations than they did the previous month. Since rising confidence usually translates into stronger consumer spending numbers, we are labeling the report bad news for bonds and mortgage rates. Fortunately, this report is only moderately important and didn't derail the overnight strength in bonds.

Next week has only a few economic reports scheduled for release, but most of them are considered to be highly important to the financial and mortgage markets. It starts with the bond market closed Monday in observance of the Veteran's Day holiday. Stocks will be open for a full day of trading. The economic reports set for release include two very influential inflation readings Wednesday and Thursday, followed by key consumer spending data Friday morning. Now that the FOMC meeting is behind us, the Fed's mandatory quiet period has been lifted to allow individual Fed members to speak publicly. There are also several of them scheduled throughout the week. Look for details on all mortgage-relevant 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.

*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
                                                  

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