June 25th, 2021 12:45 PM by T. Fanning
Hi, happy Friday!
We’re getting loans done extremely quickly - sometimes, in less than 14 days! Our pricing is also very strong. Give us a shot with your next referral!
Other than VA, interest rates were lower this week. Next week is going to be an active week for the markets and mortgage rates. It brings us the release of five monthly economic reports, two of which are considered extremely important. There is nothing of importance set for release Monday, meaning we can expect weekend news to drive trading as the new week begins. The most important data is set for the latter days, when we will get the ISM manufacturing index and the almighty monthly Employment report.*
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: 6/25/21
Friday's bond market has opened fairly flat despite mostly favorable economic data. Stocks are mixed with the Dow up 195 points and the Nasdaq down 12 points. The bond market is currently up 1/32 (1.49%), which should keep this morning's mortgage rates close to Thursday's early pricing.
Yesterday's 7-year Treasury Note auction drew a bit stronger demand than Wednesday's sale, but not enough of an interest to have an influence on mortgage rates. We saw little reaction in bonds after results were posted at 1:00 PM ET.
May's Personal Income and Outlays report was posted at 8:30 AM ET this morning, revealing a 2.0% decline in income that was a little stronger than the 2.5% decrease that was expected. More importantly though, the spending reading came in unchanged when it was expected to rise 0.3%. Those headline readings indicate consumers had a bit more money to spend than expected last month but did not spend as much as thought. Therefore, we can consider the data to be neutral to slightly favorable for bonds and mortgage rates.
Also worthy of attention was the Fed's preferred inflation reading in this data (PCE index) that was not as strong as forecasts. The core PCE reading rose 0.5% when analysts were predicting a 0.5 - 0.7% rise, meaning inflation was not as bad as some feared and eased from April's 0.7% increase. Because long-term bonds, such as mortgage securities, are so sensitive to rising inflation, this reading can be labeled as favorable for mortgage rates.
Today's second economic release was the University of Michigan's revised Index of Consumer Sentiment for June at 10:00 AM ET. It came in at 85.5, falling short of the 86.4 that was expected. The downward revision means surveyed consumers were less optimistic about their own financial and employment situations than previously announced. Since waning confidence usually means consumers are less apt to make a large purchase that fuels economic growth, we can consider the report good news for bonds and mortgage rates.
Next week is going to be an active week for the markets and mortgage rates. It brings us the release of five monthly economic reports, two of which are considered extremely important. There is nothing of importance set for release Monday, meaning we can expect weekend news to drive trading as the new week begins. The most important data is set for the latter days, when we will get the ISM manufacturing index and the almighty monthly Employment report. Look for details on all of the 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.*
*http://www.hlmcolorado.com/DailyRateAdvisoryLO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
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