May 23rd, 2025 2:02 PM by T. Fanning
Happy Friday! Wishing you a safe and enjoyable Memorial Day weekend. Sincere thanks to all who have served and continue to serve!
This week, Moody’s downgraded the U.S. credit rating due to concerns about rising national debt, which could lead to higher borrowing costs—including for mortgages. The economy also showed a small decline in the first quarter, and new trade tariffs were announced, adding to the uncertainty. With these developments, it’s less likely the Federal Reserve will lower interest rates anytime soon. Mortgage rates ended the week slightly higher as a result.
Next week will be shorter due to the holiday, but several important economic reports could still impact mortgage rates. We’ll get updates on consumer confidence and manufacturing activity, a revised GDP report showing recent economic growth, and inflation data the Fed closely watches. The Fed will also release meeting minutes that may hint at future rate changes. A few Treasury auctions are also scheduled, which can affect rates depending on investor demand.
We offer traditional Conventional, FHA, VA, USDA, Jumbo. Some of the other programs we offer include: First-time Homebuyer loans; HomePossible and HomeReady programs; Custom term loans; HomeStyle and FHA 203k renovation financing; Construction financing; Chenoa Fund loans (100% FHA financing); Conventional, FHA and VA 1x Close Construction-Perm loans; 1.50% Down FHA Advantage Program; CHFA Financing; Modular and manufactured home financing; 10% down Jumbo loans; DSCR loans; Bank Statement loans; Asset-based loans; Non-Warrantable Condos; Interest Only loans; Lot loans; Second mortgages (fixed or HELOC) on primary, second and non-owner occupied residences; Reverse mortgages; and more! 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: 5/23/25
Friday's bond market has opened in positive territory as stocks look to close the week on a negative note. The major stock indexes are showing early losses after President Trump threatened Apple and the EU with more tariffs. This has the Dow down 314 points and the Nasdaq down 220 points. The bond market is currently up 5/32 (4.51%), which with gains late yesterday should improve this morning's mortgage rates by approximately .250 of a discount point if compared to Thursday's early pricing.
April's New Home Sales report was released at 10:00 AM ET this morning, revealing a surprisingly strong 10.9% jump in sales of newly constructed homes. This was well above forecasts and the largest number of sales since February 2022. As a sign of strength in the housing sector, the data is technically bad news for bonds. However, this report covers such a small portion of all sales that it doesn't carry a high level of importance in the markets. This has prevented the news from negatively affecting mortgage pricing.
The bond market will close at 2:00 PM ET today ahead of Monday's Memorial Day holiday and will reopen Tuesday morning. Stocks will trade a full day today but will be closed Monday also. It is common to see pressure in bonds in these situations as traders look to protect themselves from headlines over the extended holiday weekend. This may lead to a minor upward revision to mortgage rates before the early closing.
Next week will be shortened due to the holiday, but there still is plenty of economic releases and other scheduled events that may affect mortgage rates. There are multiple items listed each day, some of which are considered to be highly important. We will get relevant reports on consumer confidence and manufacturing, the minutes from this month's FOMC meeting, an updated GDP reading and the Fed's preferred inflation indexes, along with a couple of Treasury auctions. Look for details on all of 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... 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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