April 29th, 2022 10:23 AM by T. Fanning
Rates finally caught a break and ended the week lower. Next week is filled with highly important events and economic data that is expected to cause volatility in the markets. It starts Monday with the release of the ISM manufacturing index and closes with the almighty monthly Employment report. In between there is another FOMC meeting that is widely expected to yield fireworks and other less important reports.*
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
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Last Updated: 4/29/22
Friday's bond market has opened in negative territory following mostly stronger economic data from this morning's batch of reports. Stocks are showing losses with the Dow down 97 points and the Nasdaq down 67 points. The bond market is currently down 7/32 (2.85%), which should cause an increase of approximately .125 of a discount point in this morning's mortgage rates. If you saw an intraday improvement Thursday, you likely will see a larger increase in this morning's pricing.
The first of this morning's three economic releases was March's Personal Income and Outlays data at 8:30 AM ET. It revealed a 0.5% increase in income and a 1.1% jump in spending. Both readings exceeded forecasts of 0.4% and 0.6% respectively, signaling stronger economic activity. The key inflation reading (Core PCE) in the report didn't reveal a major surprise. Still, the other headline readings came in stronger than predicted. Accordingly, we have to label the report unfavorable for rates.
This morning's second early release was the 1st Quarter Employment Cost Index (ECI) showed that employer costs for wages and benefits rose more than expected during the first three months of the year. The 1.4% rise was stronger than forecasts of 1.1%. Since wage inflation fuels broader inflationary pressures across the economy, we also have to consider this report as a negative for mortgage pricing.
April's revised Index of Consumer Sentiment from the University of Michigan came in at 65.2. This was a downward revision from the preliminary reading of 65.7 from two weeks ago. The decline means surveyed consumers felt a little less optimistic about their own financial situations than thought. Because waning confidence often leads to softer levels of consumer spending, we can call this release favorable for mortgage rates even though we have not seen a reaction to the news.
Next week is filled with highly important events and economic data that is expected to cause volatility in the markets. It starts Monday with the release of the ISM manufacturing index and closes with the almighty monthly Employment report. In between there is another FOMC meeting that is widely expected to yield fireworks and other less important reports. 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.*
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