July 11th, 2025 10:55 AM by T. Fanning
Happy Friday! I hope you had an awesome Fourth of July and a great week!
Last week, the economy stayed strong despite growing trade tensions. The job market remained solid, with fewer people filing for unemployment and 147,000 new jobs added. Fed Chair Jerome Powell said the Federal Reserve will keep fighting inflation and won’t lower interest rates because of political pressure.
This week, interest rates saw some moderate movement, mostly for the better. The 30-year fixed conventional rate rose slightly.
Next week will be much busier, with seven important economic reports, including two key inflation indexes and a consumer spending update that could impact mortgage rates. Several Fed members are also scheduled to speak before entering a two-week quiet period ahead of their next meeting. Each day has events to watch—except for Monday, which is the only quiet day.
We offer traditional Conventional, FHA, VA, USDA, Jumbo. Some of the other programs we offer include: First-time Homebuyer loans; HomePossible and HomeReady programs; Custom term loans; HomeStyle and FHA 203k renovation financing; Construction financing; Chenoa Fund loans (100% FHA financing); Conventional, FHA and VA 1x Close Construction-Perm loans; 1.50% Down FHA Advantage Program; CHFA Financing; Modular and manufactured home financing; 10% down Jumbo loans; DSCR loans; Bank Statement loans; Asset-based loans; Non-Warrantable Condos; Interest Only loans; Lot loans; Second mortgages (fixed or HELOC) on primary, second and non-owner occupied residences; Reverse mortgages; and more! To see a detailed list of programs, visit our website: www.homeloanmortgageco.com/mortgageprograms
Last Updated: 7/11/25
Friday's bond market has opened in negative territory again as the markets react to new tariff headlines. Stocks are following suit, pushing the Dow lower by 258 points and the Nasdaq down 44 points. The bond market is currently down 15/32 (4.40%), which should cause an increase of approximately .125 -.250 of a discount point in this morning's mortgage rates.
Yesterday's 30-year Treasury Bond auction wasn't as successful as Wednesday's 10-year Note sale. The benchmarks pointed to investor interest that was a little below average of other recent sales. Fortunately, bonds had little reaction to the 1:00 PM ET results announcement. The broader bond market did improve slightly during late afternoon trading, but it doesn't appear to be due to the auction results. Accordingly, we are labeling the auction as neutral for mortgage rates.
There isn't anything scheduled for today in terms of economic releases or other relevant events. However, President Trump's surprise announcement of a 35% tariff on most Canadian goods coming into the U.S. on top of other related announcements over the past 48 hours has brought that topic back into the forefront for bond traders. There have been reports of the cost of goods starting to rise as a result of this year's tariffs, so the fresh duties that were announced this week are fueling inflation concerns again in the bond market. Whether or not they will remain in place remains to be seen, but with such a light economic calendar this week, the new tariff headlines are driving bond trading this morning.
For as little as there was scheduled this week, next week is equally as busy. There appears to be seven monthly economic reports set for release, including two key inflation indexes and a consumer spending report that are all considered to be highly important to the financial and mortgage markets. The week also has a slew of Fed member speeches, the last before they enter their two-week pre-FOMC quiet period. Each day has multiple events listed that we will be watching except for Monday, which is the only day without something scheduled that may affect rates. 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.
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