April 25th, 2025 1:32 PM by T. Fanning
Hello! Hope your Friday is going well!
Mortgage rates are still in a gradual recovery phase after the sharp increase we saw two weeks ago. While last week offered some encouraging signs of improvement with a steady downward trend, the current week began with a bit of a wobble. We saw an upward bump in rates on Monday. However, since that initial setback, the market has thankfully stabilized, and we've seen a more consistent pattern.
Next week is packed with news that could move markets and mortgage rates. Monday is quiet. Tuesday has some less important data. Wednesday is big, with the first look at how the economy did last quarter (GDP) and the inflation report the Federal Reserve watches closely. Thursday brings a manufacturing report, and Friday has the key monthly jobs numbers.
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); Conventional 0% down; 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
As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!
Last Updated: 4/25/25
Friday's bond market has opened in positive territory despite unfavorable economic news. Stocks are mixed with the Dow down 127 points and the Nasdaq up 74 points. The bond market is currently up 7/32 (4.29%), which with gains late yesterday should improve this morning's mortgage rates by approximately .250 of a discount point.
Yesterday's 7-year Treasury Note auction didn't go as well as Wednesday's 5-year Note sale. The benchmarks showed investors were more interested in the 5-year Notes than the 7-year Notes, revealing an average demand compared to other recent sales of the same securities. It is unlikely that yesterday's afternoon bond strength is related to the auction results, but we did see a favorable move shortly after they were announced at 1:00 PM ET. We feel it is more or less a coincidence and are labeling the auction as neutral for rates.
The University of Michigan released their revised Index of Consumer Sentiment for April at 10:00 AM ET this morning. They announced a reading of 52.2 that was higher than expected and an increase from the preliminary estimate of 50.8 earlier this month. The increase means surveyed consumers felt better about their own financial and employment situations than they did previously. This is a sign of potential economic strength because rising confidence usually translates into stronger consumer spending that makes up over two-thirds of the U.S. economy. Accordingly, today's reading is bad news for bonds and mortgage rates.
Next week has plenty scheduled that is likely to influence the markets and affect mortgage rates. It starts light with nothing of importance scheduled for Monday and then begins to get interesting with some moderately important data Tuesday. Wednesday begins the highly important economic releases. This is when we will get the initial Gross Domestic Product (GDP) reading for the 1st quarter and the report that includes the Fed's preferred inflation data. Thursday follows with the ISM manufacturing index before the almighty monthly Employment report Friday morning. 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... 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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