The Home Loan Mortgage Blog

Weekly Update - 12/10/21

December 10th, 2021 12:07 PM by T. Fanning

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Hey, I hope you’ve had a great week!


Rates ended the week mixed. Next week has a handful of economic reports scheduled for release with one being considered extremely important to the markets. We also have the last FOMC meeting of the year taking place next week. That meeting will also include revised economic projections. Wednesday is the key day of the week because it has the highly influential consumer spending report in the morning and the FOMC adjournment during afternoon trading. Monday has nothing of relevance scheduled.

 

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!


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Last Updated: 12/10/21

 

Friday's bond market has opened in positive territory even though both of today's economic reports gave us bad news. Stocks are showing gains with the Dow up 81 points and the Nasdaq up 70 points. The bond market is currently up 8/32 (1.47%), which should improve this morning's mortgage rates slightly.

 

Yesterday's 30-year Treasury Bond auction did not go very well. The benchmarks we use to gauge investor interest in the securities showed a relatively weak demand. We saw bonds initially react negatively after results were posted at 1:00 PM ET, but they did recover shortly after to prevent an intraday rate increase.

 

Today's major economic release was November's Consumer Price Index (CPI) at 8:30 AM ET. It revealed a 0.8% rise in the overall reading and a 0.5% increase in the more important core data. The overall reading was a little higher than expected, but the core data pegged expectations. Also helping to offset the stronger overall reading was the year over year increase in the core data that did not show a surprise as many traders had feared. November's increases clearly show inflationary pressures were higher at the consumer level of the economy last month. While that is bad news for long-term securities such as mortgage bonds, there is some comfort this morning that they did not show ever stronger readings than we did get.

 

December's preliminary reading to the University of Michigan's Index of Consumer Sentiment closed this week's calendar at 10:00 AM ET. It came in at 70.4, up from November's 67.4 and higher than forecasts of 67.9. The increase means surveyed consumers felt better about their own financial situations than they did last month. Since strengthening confidence usually is a precursor to stronger levels of consumer spending that fuels economic growth, we should consider the data unfavorable for mortgage rates.

 

Next week has a handful of economic reports scheduled for release with one being considered extremely important to the markets. We also have the last FOMC meeting of the year taking place next week. That meeting will also include revised economic projections. Wednesday is the key day of the week because it has the highly influential consumer spending report in the morning and the FOMC adjournment during afternoon trading. Monday has nothing of relevance scheduled. 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.*

 

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

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

www.nmlsconsumeraccess.org

Posted by T. Fanning on December 10th, 2021 12:07 PM

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