The Home Loan Mortgage Blog

Weekly Update - 4/9/21

April 9th, 2021 2:25 PM by T. Fanning


Hey, I hope you’ve had a good week.

 

Rates had a nice week, ending with a solid improvement over last Friday’s numbers. Next week's calendar is much busier than this week with a couple of highly important reports, a batch of moderately relevant releases and two Treasury auctions that can influence afternoon trading. There is at least one event scheduled each day, including Monday when a 10-year Treasury Note auction will be held.*

 

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

 

As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!

       

Last Updated: 4/9/21

 

Friday's bond market has opened in negative territory following unexpectedly strong inflation data. Stocks are mixed again with the Dow up 96 points and the Nasdaq down 32 points. The bond market is currently down 10/32 (1.66%), but strength late yesterday should offset this morning's weakness and keep mortgage rates close to Thursday's early pricing.

 

This morning's only relevant economic data was March's Producer Price Index (PPI) that showed inflationary pressures at the manufacturing level of the economy spiked much more than predicted. The overall reading came in at up 1.0%, while the more important core data that excludes volatile food and energy prices jumped 0.7%. Both readings were well above forecasts of up 0.5% and 0.2% respectively. These readings are clearly bad news for bonds and mortgage rates because rapidly rising inflation makes long-term bonds, such as mortgage securities, less attractive to investors. That leads to higher yields and increases to mortgage rates.

 

Next week's calendar is much busier than this week with a couple of highly important reports, a batch of moderately relevant releases and two Treasury auctions that can influence afternoon trading. There is at least one event scheduled each day, including Monday when a 10-year Treasury Note auction will be held. Look for details on next week's calendar 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.*


*
http://www.hlmcolorado.com/DailyRateAdvisory

LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
         

Regulated by the Colorado Division of Real Estate

www.nmlsconsumeraccess.org

Posted by T. Fanning on April 9th, 2021 2:25 PM

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