February 10th, 2023 2:47 PM by T. Fanning
TGIF, I hope you’re having a good Friday.
Rates ended the week on a higher note. We have a medium-sized list of economic reports set for release next week in addition to another Treasury auction, but a few of the reports are considered to be highly important to the financial and mortgage markets. The week starts off light with nothing scheduled for Monday. The middle days will be the most active with most of the events taking place those days, including the release of the more influential data.*
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: 2/10/23
Friday's bond market has opened in negative territory as minor weakness during overnight trading was extended after unfavorable economic news this morning. Stocks are mixed with the Dow up 66 points and the Nasdaq down 39 points. The bond market is currently down 8/32 (3.69%), which with yesterday's late weakness should push this morning's mortgage rates higher than Thursday's early pricing by approximately .375 of a discount point. If you saw an intraday upward revision yesterday afternoon, you should see a smaller rise this morning.
Yesterday's 30-year Treasury Bond auction did not go nearly as well as Wednesday's 10-year Note sale did. The benchmarks we use to gauge investor demand showed a below average interest in the securities, especially when compared to the high demand Wednesday. It appears that optimism for the sale was stronger than it should have been, causing a noticeable negative reaction after results were posted at 1:00 PM ET. The selling in bonds that followed the results caused many lenders to make an intraday increase in rates before the end of the day.
Today's only relevant economic data was February's preliminary reading of the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. They announced a reading of 66.4 that exceeded forecasts of 65.0 and was higher than January's 64.9. The higher reading means surveyed consumers felt better about their own financial situations than they did last month. That is bad news for bonds and mortgage rates because rising confidence usually translates into stronger levels of consumer spending, fueling economic growth. Bonds tend to thrive in weaker economic conditions.
We have a medium-sized list of economic reports set for release next week in addition to another Treasury auction, but a few of the reports are considered to be highly important to the financial and mortgage markets. The week starts off light with nothing scheduled for Monday. The middle days will be the most active with most of the events taking place those days, including the release of the more influential data. 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.*
*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
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