April 2nd, 2021 2:34 PM by T. Fanning
Rates finally improved this week, ending down from last Friday’s numbers. Next week does not have a lot for us to be concerned with in terms of having an impact on mortgage rates. Unlike many Mondays, the week starts off with a moderately relevant report (February's Factory Orders). The most important releases will be the minutes from last month's FOMC meeting midweek and the Producer Price Index (PPI) Friday.*
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
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Last Updated: 4/2/21
Friday's bond market has opened in negative territory following news of a spike in new jobs. The stock markets are closed today for the Good Friday holiday. The bond market is currently down 13/32 (1.72%), which should push this morning's mortgage rates higher by approximately .125 of a discount point.
March's Employment report revealed the U.S. unemployment rate fell to 6.0% (-0.2%) while 916,000 jobs were added back to the economy. The unemployment rate came as no surprise, but the payroll number was well above forecasts of 620,000. There were also upward revisions to February and January's payroll numbers that totaled 156,000. These numbers indicate the employment sector was recovering at a faster pace than many had thought. While it will take nearly a year at this pace to recover all jobs lost during the pandemic, it still is enough of a jump for us to label the data as clearly bad news for bonds and mortgage rates.
There was a bit of favorable news in the data that is likely preventing an even stronger reaction to the payroll number. That would be the third headline number we look for in this report average hourly earnings. It showed earnings slipped 0.1% when they were expected to rise 0.2%. The weaker earnings help ease wage inflation concerns that can easily spread further throughout the economy. Since inflation erodes the value of a bond's future fixed interest payments, lower levels of inflation help allow bonds to thrive and mortgage rates to move lower. With all of the recent talk in the markets about inflation being a concern during the recovery, this is very good news for bonds and mortgage pricing.
The bond market will close at 2:00 PM ET today in observance of the holiday and reopen Monday morning. While many lenders may be working a full day today, the early close in bonds should prevent a late afternoon revision to rates.
Next week does not have a lot for us to be concerned with in terms of having an impact on mortgage rates. Unlike many Mondays, the week starts off with a moderately relevant report (February's Factory Orders). The most important releases will be the minutes from last month's FOMC meeting midweek and the Producer Price Index (PPI) Friday. 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...Float 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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