The Home Loan Mortgage Blog

Weekly Update - 7/19/24

July 19th, 2024 4:24 PM by T. Fanning

Hello, I hope you’re having a great Friday!

 

Earlier this week, Federal Reserve Governor Christopher Waller hinted at upcoming interest rate cuts, given stable inflation and employment. "Data suggests a soft landing, and I'll monitor this over the coming months," Waller stated at the Kansas City Fed. "We're approaching the time for a policy rate cut." Although this is good news for mortgage interest rates, rates ended the week flat, showing no significant movement or fluctuation. 

 

Next week, key economic reports including the 2nd Quarter GDP, a major manufacturing index, and the Fed’s preferred inflation index will impact markets and mortgage rates. Additionally, there will be housing reports and midweek Treasury auctions influencing market dynamics.

 

We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); Conventional 0% down; Conventional, 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 can also do non-traditional programs! 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!


Last Updated: 7/19/24

 

Friday's bond market has opened in negative territory, extending yesterday's late afternoon weakness. Stocks are showing early losses with the Dow down 178 points and the Nasdaq down 6 points. The bond market is currently down 12/32 (4.24%), which with yesterday's late selling should push this morning's mortgage rates higher by approximately .250 of a discount point compared to Thursday's early pricing.

 

There is nothing of importance scheduled for today except potentially relevant Fed-member speeches at 10:40 AM and 1:00 PM ET today. Bond traders will be looking for hints about when the Fed may start cutting key short-term interest rates. Currently, the strong consensus is that it will not happen at this month's FOMC meeting but is highly likely to come at September's meeting. Any comments that contradict that theory could cause a reaction in trading today.

 

Next week brings us several economic reports that are known to be highly influential to the markets and mortgage rates. The week has at least one item scheduled every day except Monday with the most important reports coming during the latter days. We will get the initial 2nd Quarter GDP reading, an important manufacturing index and another that includes the Fed's preferred inflation index. Other listed reports are mostly housing related and of less importance. There are also a couple of Treasury auctions midweek that will come into play during afternoon hours. Look for details on all of next week's relevant 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.*

 

*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
                                                  

Company NMLS ID: 479289 | LO NMLS: 208694

CO License: 100008854

FL Company License: MBR4416 | FL License: LO89221

 

Regulated by the Colorado Division of Real Estate

www.nmlsconsumeraccess.org
Posted by T. Fanning on July 19th, 2024 4:24 PM

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