The Home Loan Mortgage Blog

Weekly Update - 3/19/21

March 19th, 2021 12:31 PM by T. Fanning


Hi, I hope you’re having a good Friday.

 

Rates ended the week up from last Friday’s numbers. Next week has plenty for the markets to digest but many of the releases are only moderately important. Drawing the most attention will likely be Fed Chairman Powell's two days of congressional testimony Tuesday and Wednesday as part of the Coronavirus Aid Package requirements. There is something of relevance scheduled for each day, including Monday when February's Existing Home Sales report will be released.*

 

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.hlmcolorado.com/mortgageprograms

 

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

       

Last Updated: 3/19/21

 

Friday's bond market has opened in negative territory again as the pressure in bonds and upward trend in yields continue. Stocks are showing sizable losses during early trading, pushing the Dow lower by 302 points and the Nasdaq down 71 points. The bond market is currently down 10/32 (1.74%), causing this morning's mortgage rates to be approximately .125 of a discount point higher than Thursday's early pricing.

 

There is nothing scheduled today in terms of economic data or other events that we need to be concerned with. However, the Federal Reserve announced this morning that they are not going to extend a bank reserve rule change that was put in place during the early stages of the Covid crises. The loosening of the rule last April altered the ratios of required reserves banks must hold, particularly regarding Treasury securities. Originally, the intention was to encourage banks to purchase Treasury securities in an effort to provide liquidity to the bond market. Now that the bond market has stabilized (in the Fed's eyes), they feel the rule is now not needed. Failing to extend that rule reduces the encouragement for some banks to buy Treasury notes and bonds. As a result, the bond market is responding negatively this morning.

 

Don't be surprised to see an active day in stocks since today is quadruple witching day. That is a stock term for when four different stock options expire at once, leading to high volume in trading and often, quite a bit of volatility. Under normal circumstances, the potential volatility in stocks may influence bond trading enough to possibly affect mortgage rates slightly. Whether or not that will be the case today, considering the current state of the bond market, remains to be seen.

 

Next week has plenty for the markets to digest but many of the releases are only moderately important. Drawing the most attention will likely be Fed Chairman Powell's two days of congressional testimony Tuesday and Wednesday as part of the Coronavirus Aid Package requirements. There is something of relevance scheduled for each day, including Monday when February's Existing Home Sales report will be released. 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 by T. Fanning on March 19th, 2021 12:31 PM

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