March 26th, 2021 12:59 PM by T. Fanning
Hi, I hope you had a good week,
Rates ended the week mixed with fairly moderate increases/decreases. Next week brings us plenty for the markets to digest, including the Good Friday holiday that has an altered trading schedule. The week starts off light with nothing of importance scheduled for Monday, but there is something set for every other day. Some of the releases are considered to be extremely important, including the ISM manufacturing index and the monthly Employment report the latter days. Besides those two particular releases, there are also some moderately important reports 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.hlmcolorado.com/mortgageprograms
As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!
Last Updated: 3/26/21
Friday's bond market has opened in negative territory with stocks showing solid gains and little help from this morning's economic data. The Dow is currently up 163 points while the Nasdaq is up 68 points. The bond market is down 9/32 (1.66%), which should push this morning's mortgage rates higher by approximately .125 of a discount point.
The first of this morning's two economic releases was February's Personal Income and Outlays data at 8:30 AM ET. It revealed that income dropped 7.1% from January's level and spending declined 1.0%. The large drop in income did not come as a surprise because January's data had stimulus money included. The spending number was weaker than expected, showing consumer spending slowed more than thought when stimulus money was not available. While these numbers are favorable for bonds and mortgage rates, they are skewed because of the stimulus injection the preceding month. In addition, the PCE index that the Fed relies on heavily as an inflation gauge failed to show any big surprises. That has prevented a positive reaction in bonds this morning.
March's revised Index of Consumer Sentiment was posted at 10:00 AM ET, coming in at 84.9. That was an upward revision from the preliminary reading of 83.0 earlier this month and higher than expectations. An upward revision means consumers felt better about their own financial situations than previously thought. Since stronger confidence usually means consumers are more likely to make a large purchase in the near future, fueling economic growth, we can consider the report bad news for mortgage rates.
Next week brings us plenty for the markets to digest, including the Good Friday holiday that has an altered trading schedule. The week starts off light with nothing of importance scheduled for Monday, but there is something set for every other day. Some of the releases are considered to be extremely important, including the ISM manufacturing index and the monthly Employment report the latter days. Besides those two particular releases, there are also some moderately important reports 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...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/DailyRateAdvisoryLO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
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