The Home Loan Mortgage Blog

Weekly Update - 5/6/22

May 6th, 2022 3:01 PM by T. Fanning

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Happy Friday,

 

The Fed’s raised their benchmark interest rate by .50%, which the market expected. Mortgage interest rates initially acted calm, but rose the next two days, ending the week higher. Next week doesn't have a large number of economic reports scheduled that we need to be concerned with, but the calendar includes two highly important inflation readings and a couple of Treasury auctions that may also influence rates. The week starts off light with nothing of importance scheduled for Monday or Tuesday.*

 

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!


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Last Updated: 5/6/22

 

Friday's bond market has opened in negative territory despite somewhat uneventful results in today's major economic report. Stocks are extending their sell-off after yesterday's losses pushed the Dow lower by over 1,000 points. The Dow is currently down another 405 points while the Nasdaq has lost 238 points. The bond market is currently down 10/32 (3.06%), which should cause this morning's mortgage rates to be approximately .125 - .250 of a discount point higher than Thursday's early pricing.

 

Today's big economic release was April's Employment report that showed 428,00 new jobs were added to the economy and the unemployment rate held at 3.6% last month. Forecasts were calling for 400,000 jobs and 3.6% unemployment. Neither number can be considered good or bad news for rates. Payrolls were a little higher than expected, but the variance from forecasts is not wide enough to cause alarm.

 

The third headline number was average earnings that came in up 0.3% when forecasts predicted a 0.4% rise. This number is particularly influential on bonds, so the lower than expected increase can be labeled as favorable for mortgage rates. Unfortunately, an upward revision of 0.1% to March's earnings is offsetting the slight miss in April. In other words, the earnings reading is neutral for mortgage pricing.

 

Next week doesn't have a large number of economic reports scheduled that we need to be concerned with, but the calendar includes two highly important inflation readings and a couple of Treasury auctions that may also influence rates. The week starts off light with nothing of importance scheduled for Monday or Tuesday. 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
                      

Company NMLS ID: 479289 | LO NMLS: 208694

CO License: 100008854

FL Company License: MBR4416 | FL License: LO89221

 

Regulated by the Colorado Division of Real Estate

www.nmlsconsumeraccess.org

Posted by T. Fanning on May 6th, 2022 3:01 PM

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