May 13th, 2022 10:15 AM by T. Fanning
Hi, I hope you're doing well.
Rates had a nice week, ending the week lower. Next week brings us a handful of relevant economic reports for the markets to digest along with another Treasury auction. One of the reports stands out as much more important than the others. Monday has nothing scheduled that we need to be concerned with.*
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: 5/13/22
Friday's bond market has opened in negative territory, despite favorable economic news. Stocks are probably contributing to this morning's early bond weakness with gains of 333 in the Dow and 342 in the Nasdaq. The bond market is down 18/32 (2.92%), which should push this morning's mortgage rates higher by approximately .125 of a discount point. If you saw an intraday improvement Thursday, you likely will see a larger increase this morning.
Yesterday's 30-year Treasury Bond auction drew a strong demand from investors. We saw bonds improve after results were posted at 1:00 PM ET, leading to a few lenders improving rates intraday. However, a late negative turn in bonds caused some lenders to revise pricing slightly higher before closing.
May's preliminary reading to the University of Michigan's Index of Consumer Sentiment was posted at 10:00 AM ET this morning. The index came in at 59.1, well below forecasts of 63.5 and April's final reading of 65.2. The decline indicates surveyed consumers are growing more concerned about their own financial and employment situations. Since waning confidence usually translates into softer consumer spending numbers, we can consider this data to be favorable for bonds and mortgage rates even though it doesn't show it in today's early trading.
Next week brings us a handful of relevant economic reports for the markets to digest along with another Treasury auction. One of the reports stands out as much more important than the others. Monday has nothing scheduled that we need to be concerned with. 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.*
*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
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