March 10th, 2023 10:56 AM by T. Fanning
Hello, I hope you’re having a great Friday.
Rates fell hard today, due to a smaller-than-expected gain in wages. Overall, rates ended the week lower. Next week looks to be fairly busy in terms of relevant economic reports scheduled for release. It starts slow with nothing set for Monday, but Tuesday and Wednesday both bring highly important releases that have the potential to heavily influence the financial and mortgage markets. The rest of the week has a few moderately important reports for us to watch. During the week we will get consumer and producer level inflation readings, a key consumer spending report and a mixed bag of other 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: 3/10/23
Friday's bond market has opened up sharply following mixed employment data that leaned mostly towards favorable for bonds. Stocks are reacting more to concerns about U.S. bank turmoil than the economic report, pushing the Dow lower 37 points and the Nasdaq down 74 points. The bond market is currently up 52/32, dropping the benchmark 10-year Treasury Note yield down to 3.70%. This should lead to an improvement in this morning's mortgage rates by approximately .500 - .750 of a discount point if compared to Thursday's early pricing.
This morning's major economic release was February's monthly Employment report at 8:30 AM ET. It revealed the U.S. unemployment rate moved higher by 0.2% to 3.6% and 311,000 new payrolls added to the economy. The unemployment rate was expected to hold at 3.4%, making that headline good news for rates. Not so good was the second consecutive month of surprisingly strong payrolls, even though January and December's numbers were revised a little lower.
Titling the report in favor of a bond rally was the average earnings reading that rose only 0.2% when forecasts showed a 0.3% rise and some traders feared an even stronger increase. With two of the three major headline numbers considered good news for bonds, we are seeing a strong positive reaction to the report this morning.
Next week looks to be fairly busy in terms of relevant economic reports scheduled for release. It starts slow with nothing set for Monday, but Tuesday and Wednesday both bring highly important releases that have the potential to heavily influence the financial and mortgage markets. The rest of the week has a few moderately important reports for us to watch. During the week we will get consumer and producer level inflation readings, a key consumer spending report and a mixed bag of other 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
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
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.