August 16th, 2024 7:47 PM by T. Fanning
Hello! Wishing you an amazing weekend ahead!
With Consumer Price Index data as expected, this week lacked the volatility of the past two. Even Thursday's jobless claims and retail sales couldn't shake bonds. Rates concluded the week with mixed results.
Next week sees fewer, less impactful economic releases, mainly housing-focused. Key events include: - Monday: July's Leading Economic Indicators at 10:00 AM ET - Midweek: Fed meeting minutes - Friday: Fed Chairman Powell's speech.
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
Last Updated: 8/16/24
Friday's bond market has opened in positive territory following mixed economic news. Stocks are calm with the Dow down 23 points and the Nasdaq up 6 points. The bond market is currently up 3/32 (3.90%), which should keep this morning's mortgage rates close to Thursday's early pricing. Some lenders may report a slight improvement this morning, but it should be a minimal change.
July's Housing Starts was this morning's first economic release. It showed that new home groundbreakings dropped to their lowest level since June 2020. The Commerce Department announced a much larger than expected 6.8% decline in new starts. Newly issued permits, a sign of future groundbreakings, also fell more than expected last month. These are signs of weakness in the new home portion of the housing sector, making the data good news for bonds and mortgage rates.
The University of Michigan said their August Index of Consumer Sentiment stood at 67.8, up from July's 66.4. The increase means surveyed consumers feel better about their own financial and employment situations this month than they did last month. Since rising confidence usually translates into stronger consumer spending (see yesterday's Retail Sales report), this was bad news for mortgage rates. Fortunately, both of this morning's reports are moderately important as best, preventing a negative reaction to this data.
Next week is much lighter in terms of economic releases than the past couple. There are a few scheduled for next week, mostly housing-related, but are not nearly as influential as some of the reports that have fueled the recent volatility in the financial and mortgage markets. The week's calendar starts Monday morning with July's Leading Economic Indicators set for release at 10:00 AM ET. We will also get the minutes from last month's FOMC meeting midweek and a speech from Fed Chairman Powell Friday morning at the annual Fed Jackson Hole Symposium that begins late in the week. Look for details on all of next week's 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... Float if my closing were taking place between 8 and 20 days... Lock 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
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