The Home Loan Mortgage Blog

Weekly Update - 2/25/22

February 25th, 2022 2:56 PM by T. Fanning

A picture containing text, newspaper, sign 
Description automatically generated

 

Hey, I hope you've had a great weekend!

 

Rates ended the week a tad higher. Next week begins the first of the month reports that tend to carry a higher level of importance in the markets. Activities start Tuesday with the release of the ISM manufacturing index (usually the first business day of each month) and end with the almighty Employment report (first Friday of each month). In between we have several lower profile reports that can also influence mortgage rates. As we are seeing in today's trading, the Russia/Ukraine conflict is losing the attention of market participants. There is a possibility of weekend news on the crisis affecting Monday's trading if something changes drastically before then, but as of this moment there is nothing scheduled Monday that we need to be concerned with.*

 

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!


Text 
Description automatically generated with medium confidence

  

Last Updated: 2/25/22

 

Friday's bond market has opened down slightly despite the full out invasion in Ukraine. Stocks are mixed with the Dow up 185 points and the Nasdaq down 79 points. The bond market is currently down 2/32 (1.97%), which should keep this morning's mortgage rates close to Thursday's early pricing.

 

January's Personal Income and Outlays report was posted at 8:30 AM ET this morning, revealing no change in the income reading and a 2.1% rise in spending. Both were stronger than the 0.3% decline and 1.5% rise that analysts were expecting to see. Because higher levels of income allow consumers to spend more and the report shows they did spend more than thought, we must consider the data unfavorable for mortgage rates.

 

The Fed's preferred inflation gauge that comes from this report showed now surprises. The core PCE Index rose 0.5%, matching forecasts.

 

Also at 8:30 AM ET this morning was the release of January's Durable Goods Orders report. The Commerce Department announced a 1.6% rise in new orders for big-ticket products such as airplanes, appliances, cars and electronics. A secondary reading that strips out more transportation-related orders (airplanes) revealed a 0.7% increase. Both of these readings also exceeded expectations, signaling manufacturing sector strength. As a sign of stronger economic activity, we must consider this report to be negative for bonds and mortgage rates also.

 

Today's third economic release was the revised Index of Consumer Sentiment for February from the University of Michigan. It came in at 62.8, up from the preliminary reading og 61.7 and down from January's final 67.2. The upward revision means surveyed consumers were more optimistic about their own financial situations than earlier in the month. Rising sentiment often leads to stronger levels of consumer spending that fuels economic growth. This is why we should consider it bad news for rates.

 

Next week begins the first of the month reports that tend to carry a higher level of importance in the markets. Activities start Tuesday with the release of the ISM manufacturing index (usually the first business day of each month) and end with the almighty Employment report (first Friday of each month). In between we have several lower profile reports that can also influence mortgage rates. As we are seeing in today's trading, the Russia/Ukraine conflict is losing the attention of market participants. There is a possibility of weekend news on the crisis affecting Monday's trading if something changes drastically before then, but as of this moment there is nothing scheduled Monday that we need to be concerned with. Look for details on next week's schedule of events 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 February 25th, 2022 2:56 PM

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog:

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question