The Home Loan Mortgage Blog

Weekly Update - 6/3/22

June 3rd, 2022 10:56 AM by T. Fanning

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Hey,

 

The winning streak finally came to an end; rates ended the week higher. Next week is very light in terms of relevant economic releases scheduled, but we do have a couple of events that are likely to influence mortgage rates. One of the two scheduled monthly reports is considered to be extremely important to the markets, particularly the bond and mortgage markets. There is nothing scheduled Monday that we need to be concerned with, meaning we can expect weekend headlines to have the strongest impact on Monday's rates. Activities will start Wednesday afternoon when results of the first of the week's two relevant Treasury auctions are announced. The important inflation reading will come Friday morning.*

 

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: 6/3/22

 

Friday's bond market has opened in negative territory following mixed results in this morning's major economic report. Stocks are showing early losses of 171 points in the Dow and 192 points in the Nasdaq. The bond market is currently down 11/32 (2.95%), but strength late yesterday should create a slight improvement in this morning's mortgage rates. If you say an intraday improvement yesterday, you should see a small increase this morning.

 

May's Employment report was today's key economic report. It revealed the U.S. unemployment was unchanged from April's 3.6% and 390,000 new jobs were added to the economy. The unemployment rate was a bit higher than expected (good news for rates), but the payroll number was higher also (bad news). Those two headline numbers somewhat offset each other. The job number carries more significance than the unemployment rate these days, so we can say it is a little more important.

 

Allowing us to call the report mostly favorable was the 0.3% increase in average earnings during the month when forecasts showed a 0.4% rise. Bonds are very attentive to inflation data and since this reading gives us an indication of wage inflation we can label it as good news.

 

Next week is very light in terms of relevant economic releases scheduled, but we do have a couple of events that are likely to influence mortgage rates. One of the two scheduled monthly reports is considered to be extremely important to the markets, particularly the bond and mortgage markets. There is nothing scheduled Monday that we need to be concerned with, meaning we can expect weekend headlines to have the strongest impact on Monday's rates. Activities will start Wednesday afternoon when results of the first of the week's two relevant Treasury auctions are announced. The important inflation reading will come Friday morning. Look for details of the 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
                                               

Company NMLS ID: 479289 | LO NMLS: 208694

CO License: 100008854

FL Company License: MBR4416 | FL License: LO89221

 

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Posted by T. Fanning on June 3rd, 2022 10:56 AM

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