July 16th, 2021 5:40 PM by T. Fanning
Hi, happy Friday,
Rates were mixed this week with minor changes in both directions. Next week has far fewer economic reports and other events scheduled than this week did. Most of what is being posted is related to the housing sector and likely will not cause a major sell-off or rally in bonds. Monday has nothing of importance scheduled, meaning we can expect weekend news to drive trading that day.*
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: 7/16/21
Friday's bond market has opened in negative territory, partly due to stronger than expected results in today's major economic release. Stocks are showing modest gains of 20 points in the Dow and 16 points in the Nasdaq. The bond market is currently down 6/32 (1.32%), but gains late yesterday should keep this morning's mortgage rates close to Thursday's early pricing. If you saw an intraday improvement Thursday afternoon, you may see an increase of the same amount this morning.
The highly important Retail Sales report for June was posted at 8:30 AM ET this morning, revealing a surprisingly strong 0.6% jump in sales when forecasts showed a 0.5% decline. Even a secondary reading that excludes more costly and volatile auto transactions was much higher than expected (up 1.3% vs up 0.3%). Those readings indicate consumers spent much more than anticipated last month. Softening the reaction to the data could be sizable downward revisions to May's sales that made previously announced declines larger. Today's increases make the data bad news for bonds and mortgage rates because consumer spending makes up almost 70% of the U.S. economy and the report is a sign of economic strength.
This week's calendar closed with the University of Michigan's preliminary Index of Consumer Sentiment that was released at 10:00 AM ET. It came in at 80.8, down from June's 85.5 and lower than forecasts. The lower reading means surveyed consumers did not feel as good about their own financial situations as they did last month. Because waning confidence usually means consumers are less likely to make large purchases that fuel economic growth, we can consider this report favorable for the bond market and mortgage rates. Unfortunately, the Retail Sales report carries much more significance than this report does.
Next week has far fewer economic reports and other events scheduled than this week did. Most of what is being posted is related to the housing sector and likely will not cause a major sell-off or rally in bonds. Monday has nothing of importance scheduled, meaning we can expect weekend news to drive trading that day. 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...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.*
LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
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