April 1st, 2022 11:06 AM by T. Fanning
Happy April Fools, I hope you have a good weekend.
Rates ended the week mixed, with fairly minor changes. Next week has little scheduled in terms of economic reports that are expected to influence rates. The only monthly report, February's Factory Orders, is set for Monday. Although, it is only moderately important to the markets. What we lack in data we will get in Fed speaking engagements and the release of the minutes from the most recent FOMC meeting.*
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!
Last Updated: 4/1/22
Friday's bond market has opened well in negative territory, recovering most of this week's rally. Stocks are much more subdued with the Dow down 40 points and the Nasdaq down 5 points. The bond market is currently down 23/32 (2.43%), which should cause an increase in this morning's rates of approximately .375 - .500 of a discount point if compared to Thursday's early pricing.
First of this morning's two major economic releases was March's Employment report that showed the unemployment rate fell to 3.6% last month while 431,000 new jobs were added to the economy. The unemployment rate was lower than expected (3.7%), making it a negative for bonds and mortgage rates. However, the number of payrolls came in below forecasts of 480,000 (favorable news for rates). February's number was revised higher to 750,000 added jobs, indicating the employment sector was stronger than thought in February.
Average earnings rose 0.4% during the month, as they were expected to do. While the monthly number didn't show a surprise, the year over year increase did come in stronger than expected. Because wage inflation is a heavy contributor to broader inflation in the economy, it is a concern in the bond market.
While it's easy to attribute this morning's bond losses to a stronger Employment report, the truth is that bonds were showing most of their early losses before it was posted. It appears that traders had predetermined that this was going to be a negative day for bonds and mortgage rates.
The week's final release of the week was also a highly important release. The Institute for Supply Management (ISM) announced their manufacturing index for March stood at 57.1, down from February's 58.6 and lower than expectations of 58.3. The decline means fewer surveyed manufacturing executives felt business had improved last month than did the preceding month. That is a sign of sector weakness that allows us to label this report as favorable for bonds and mortgage rates.
Next week has little scheduled in terms of economic reports that are expected to influence rates. The only monthly report, February's Factory Orders, is set for Monday. Although, it is only moderately important to the markets. What we lack in data we will get in Fed speaking engagements and the release of the minutes from the most recent FOMC meeting. Look for details on next week's activities in Sunday evening's weekly preview.
If I were considering financing/refinancing a home, I would....
Float 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.*
*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
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