The Home Loan Mortgage Blog

Weekly Update - 12/31/20

December 31st, 2020 12:41 PM by T. Fanning



Hello, I hope you have a good and safe New Years.

Rates were again mixed, but with minimal changes. 
Next week has a fairly large number of relevant economic releases scheduled that the markets will be watching. Next week has much more scheduled for the markets to digest than this week did. It starts with the ISM manufacturing index Tuesday and closes with the almighty monthly Employment report Friday morning. Monday has nothing of relevance, so we can expect headlines over the long weekend to drive trading as the new week starts.*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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.hlmcolorado.com/mortgageprograms

As always, please let me know if I can help you/friends/family/potential buyers/borrowers!                

Last Updated: 12/31/20

Thursday's bond market has opened in positive territory despite unfavorable economic data. Stocks are nearly flat with the Dow down 5 points and the Nasdaq down 6 points. The bond market is currently up 2/32 (0.92%), which should improve this morning's mortgage rates by approximately .125 of a discount point.  

This morning's release of last week's unemployment figures showed that 787,000 new claims for benefits were filed during the week. This was lower than expectations and down from the previous week's revised 806,000 claims, meaning the employment sector was a bit stronger than expected last week. Because claims were lower than predicted, we should consider the data neutral to slightly negative for mortgage rates. Fortunately, with the number still significantly higher than when the pandemic started, traders appear to be shrugging off the news this morning.  

The bond market is closing at 2:00 PM ET today and will be closed tomorrow for the New Year's Day holiday. Stocks will trade a full day today and will be closed tomorrow also. All markets will reopen for regular trading Monday morning. We sometimes see a little pressure in bonds before these long weekends as traders look to protect themselves over the extended closing. It shouldn't lead to a noticeable move in rates but is worth noting.  

Next week has much more scheduled for the markets to digest than this week did. It starts with the ISM manufacturing index Tuesday and closes with the almighty monthly Employment report Friday morning. Monday has nothing of relevance, so we can expect headlines over the long weekend to drive trading as the new week starts. 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.*

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




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on December 31st, 2020 12:41 PM

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