The Home Loan Mortgage Blog

Weekly Update - 6/4/21

June 4th, 2021 8:44 AM by T. Fanning


TGIF, I hope you have a good Friday and weekend.

 

Other than FHA, rates ended the week higher. Next week has a much lighter schedule than this week did, but still has some relevant data that includes a major inflation reading and a couple of Treasury auctions. The more important events take place later in the week.*

 

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: 6/4/21

 

Friday's bond market has opened in positive territory following the release of some key employment numbers. Stocks are also reacting positively to the data with the Dow up 109 points and the Nasdaq up 163 points. The bond market is currently up 14/32 (1.57%), which should improve this morning's mortgage rates. Weakness late yesterday led to upward rate revisions from some lenders. If you saw a rate increase before closing yesterday, you should see a larger improvement this morning, leaving rates lower than Thursday's early pricing by approximately .125 of a discount point.

 

May's Employment report that was posted at 8:30 AM ET gave us mixed results. It revealed the unemployment rate fell to 5.8% last month, down from April's 6.1%. Forecasts were calling for 5.9%. Another unfavorable headline number was the 0.5% jump in average earnings when it was expected to rise 0.2%. The stronger jump in earnings raises concerns about wage inflation that easily spreads to other parts of the economy.

 

The good news came in the 559,000 jobs added back to the economy that was well below the expected 680,000. That followed April's surprisingly low 278,000 new payrolls, which many had thought would be revised much higher. These numbers show the employment sector is not as strong as thought, making this headline number good news for bonds and mortgage rates.

 

April's Factory Orders data was posted at 10:00 AM ET, showing new orders at U.S. factories fell 0.6%. That is a sign that U.S. manufacturing activities were softer than thought last month because forecasts showed a 0.5% increase. Accordingly, we can consider the data favorable for the bond and mortgage markets. However, this report is not the cause of this morning's bond rally. They were well in positive ground before this data was released.

 

Next week has a much lighter schedule than this week did, but still has some relevant data that includes a major inflation reading and a couple of Treasury auctions. The more important events take place later in the week. 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...
Lock if my closing were taking place between 21 and 60 days...
Lock 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 June 4th, 2021 8:44 AM

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