The Home Loan Mortgage Blog

Weekly Update - 7/2/21

July 2nd, 2021 1:23 PM by T. Fanning



We’re still getting loans done very quickly!  Call me if you’re frustrated with slow loan closings!


Rates were mostly lower this week (USDA and Jumbo had a very small increase). 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:


As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!

Last Updated: 7/2/21


Friday's bond market has opened in positive territory following mixed results in today's key economic report. Stocks are showing moderate gains, pushing the Dow up 27 points and the Nasdaq up 63 points. The bond market is currently up 4/32 (1.44%), which should allow this morning's mortgage rates to be lower than Thursday's early pricing by approximately .125 of a discount point.


June's Employment report was this morning's major economic release, giving us insight into the employment sector last month. It showed the unemployment rate moved higher 0.1% to 5.9% instead of lower as forecasts were calling for. Another headline number was the 850,000 jobs added back to the economy, exceeding the 680,000 that was expected. The higher unemployment rate is favorable news for bonds and rates while the stronger payroll number should be considered negative news.


Average earnings, which is a sign of wage inflation that bonds are particularly sensitive to, rose 0.3% when it was predicted to increase 0.4%. This is another bit of good news for the bond market, although it still shows wages are rising fairly quickly and keeps inflation in the economy as a point of concern.


Overall, the report gave us a mixed bag of readings. There was enough favorable news to prevent a sell-off in reaction to the large payroll number, but enough concern about the payroll number to restrict the bond rally this morning. It is important to know that bonds were set to open with gains even before this morning's report was posted, meaning a good portion of the early strength has nothing to do with the employment data.


Also released this morning was May's Factory Orders data. The Commerce Department announced a 1.7% jump in new orders for durable and non-durable goods, matching forecasts. The increase indicates growth in the manufacturing sector, but since there was no surprise in the report, it has had no impact on today's bond trading or mortgage pricing.


The bond market will close at 2:00 PM ET today ahead of Monday's Independence Day recognition. Stocks will have a full trading day today. All markets will be closed Monday and reopen for regular trading hours Tuesday. The holiday schedule could lead to a little pressure in bonds this afternoon as investors look to protect themselves over the long weekend. If they do make that move, we may see a slight increase in mortgage rates before closing, but it should not be a significant change.


Next week has very little scheduled that appears to be relevant to mortgage rates. The most notable event will be the release of the minutes from last month's FOMC meeting Wednesday afternoon. Look for details on what is scheduled 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


T. Fanning
Owner - Mortgage Consultant | Home Loan Mortgage
1101 Twin Peaks Cir, Longmont, CO 80503
Cell: 303-931-3239 | Fax: 303-684-0686 |
LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289

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Posted by T. Fanning on July 2nd, 2021 1:23 PM



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