The Home Loan Mortgage Blog

Weekly Update - 4/18/22

April 18th, 2022 9:53 PM by T. Fanning

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Hi, I hope you had a great weekend!

 

Rates continued their upward trend starting the week higher. Overall, there is little to be concerned about in this week's economic data. None of what is being released is considered to be a key report or expected to cause heavy selling or buying in the markets. The most important day for rates could be Wednesday or possibly Thursday if Fed Chair Powell says something unexpected and influential. The calmest day could be today or Friday unless something surprising transpires. We need to keep in mind that corporate earnings season is picking up momentum this week also. Generally speaking, good news for stocks is bad news for bonds and mortgage rates.*

 

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!


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Last Updated: 4/18/22

 

Monday's bond market has opened fairly flat with little to drive trading this morning. Stocks are starting the week mixed with the Dow up 44 points and the Nasdaq down 60 points. The bond market is currently up 1/32 (2.82%), but weakness late Thursday is going to cause an increase in this morning's mortgage rates of approximately .250 of a discount point. The markets were closed Friday for the Good Friday holiday.

 

There is nothing of importance scheduled for today. The rest of the week brings us the release of only four economic reports that we need to be concerned with, in addition to a Treasury auction midweek and a couple of Fed speeches.

 

The first of this week's activities will be the release of March's Housing Starts report at 8:30 AM ET tomorrow. This data tracks groundbreakings of new home construction and gives us a measurement of housing sector strength. The report is expected to show a slight decline in new starts last month, indicating weakness in the new home portion of the housing sector. Good news for rates would be a sizable decline, but this data doesn't draw a high level of interest. It will take a large variance from forecasts to have a noticeable impact on mortgage pricing.

 

Also worth noting is a week of International Monetary Fund (IMF) meetings and discussions that have the potential to affect the global markets this week. The IMF conference is a wild card of sorts as something unexpected can be said or announced at any time, causing volatility in the markets. There is no way to predict what will happen or if this will be a positive or negative event for rates.

 

Overall, there is little to be concerned about in this week's economic data. None of what is being released is considered to be a key report or expected to cause heavy selling or buying in the markets. The most important day for rates could be Wednesday or possibly Thursday if Fed Chair Powell says something unexpected and influential. The calmest day could be today or Friday unless something surprising transpires. We need to keep in mind that corporate earnings season is picking up momentum this week also. Generally speaking, good news for stocks is bad news for bonds and mortgage rates.

 

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

www.nmlsconsumeraccess.org

Posted by T. Fanning on April 18th, 2022 9:53 PM

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