The Home Loan Mortgage Blog

Weekly Update - 5/28/21

May 28th, 2021 11:33 AM by T. Fanning


Hey, I hope you’re doing well.

 

Rates were mixed again this week, with only minor changes. Next week is full of relevant economic releases that are likely to affect the markets and influence mortgage rates. They will start Tuesday with the release of the important Institute for Supply Management (ISM) manufacturing index and conclude Friday with two releases, one of which is the almighty monthly Employment report. In between, there are a few releases that we will also be watching.*

 

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: 5/28/21

 

Friday's bond market has opened in positive territory following mostly uneventful economic data. Stocks are showing gains, pushing the Dow higher by 117 points and the Nasdaq up 61 points. The bond market is currently up 4/32 (1.59%), but weakness late yesterday is going to cause this morning's rates to be slightly higher than Thursday's early pricing.

 

April's Personal Income and Outlays data was posted at 8:30 AM ET this morning, revealing a 13.1% decline in income last month while spending rose 0.5%. Both readings were a bit stronger than expected, but the numbers are considered heavily skewed due to the stimulus payments sent in March. This is why we haven't seen much of a reaction to the headline numbers. There also is the PCE Index in this report that the Fed relies on heavily as an inflation gauge. However, it didn't reveal a significant surprise, preventing a reaction this morning.

 

Today's second piece of data came from the University of Michigan, who closed out this week's calendar with the release their revised Index of Consumer Sentiment for May. They announced a reading of 82.9 that was nearly unchanged from the preliminary estimate of 82.8. The lack of a noticeable revision allows us to consider the data as neutral for rates.

 

The bond market will close at 2:00 PM ET today ahead of the Memorial Day holiday. Stocks are open for a full session today, but don't be surprised to see lighter than normal trading this afternoon as some traders checkout for the holiday. All markets will be closed Monday, reopening Tuesday for regular trading.

 

Next week is full of relevant economic releases that are likely to affect the markets and influence mortgage rates. They will start Tuesday with the release of the important Institute for Supply Management (ISM) manufacturing index and conclude Friday with two releases, one of which is the almighty monthly Employment report. In between, there are a few releases that we will also be watching. 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.*


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

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Posted by T. Fanning on May 28th, 2021 11:33 AM

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