May 10th, 2024 2:31 PM by T. Fanning
TGIF, I hope you’re having a good day!
It was a quiet week for rates. This morning's consumer sentiment data showed the public is growing concerned about inflation and the job market, but the weak data didn't help rates much. Rates ended the week flat, with only minor changes.
The upcoming week will feature significant economic reports, such as key inflation readings and a consumer spending report. Additionally, there are numerous Fed speaking events scheduled, including an appearance before Congress by Fed Chairman Powell. With all the activity, it could be a volatile week for rates.
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); 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
Last Updated: 5/10/24
Friday's bond market has opened in negative territory despite favorable economic news. Stocks are showing early gains of 147 points in the Dow and 47 points in the Nasdaq. The bond market is currently down 9/32 (4.49%), which should bring this morning's mortgage rates back to nearly unchanged from Thursday's morning pricing. If you didn't see an intraday revision yesterday, you should see little change this morning.
Yesterday's 30-year Treasury Bond auction drew a stronger demand from investors than Wednesday's 10-year Note sale did. The benchmarks indicated a decent interest in the securities compared to other recent sales. Bonds improved after results were announced at 1:00 PM ET, leading to many lenders issuing an intraday improvement to rates. Unfortunately, this morning's early selling has erased that improvement.
This week's calendar came to a close today with the 10:00 AM ET release of May's preliminary Index of Consumer Sentiment from the University of Michigan. They announced a reading of 67.4 that fell well short of the predicted 76.8 and was a large decline from April's revised 77.0. The large drop means surveyed consumers were more concerned about their own financial situations than they were last month. This is good news for bonds and mortgage rates because waning confidence usually translates into softer consumer spending numbers that make up such a large part of the U.S. economy. The bad news is that this report doesn't carry a high level of importance in the markets, preventing it from offsetting the overnight and early morning bond selling.
Next week has several highly influential economic reports scheduled for release, including two key inflation readings and a closely watched consumer spending report. There are also a large number of Fed speaking events scheduled, one of which is before congress and another includes Fed Chairman Powell. The week starts light with just a couple of speeches and no relevant economic data Monday 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... 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.*
*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
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