August 6th, 2021 10:12 AM by T. Fanning
We now serve the state of Florida! Let me know if I can be of any help with any buyers/borrowers in either Colorado or Florida!
Rates were up slightly this week. Next week brings us a handful of economic releases and other events that are expected to influence mortgage rates. The week starts Monday with nothing of importance scheduled. The rest of the calendar includes two highly important inflation readings, along with a few moderately important reports and a couple of Treasury auctions that may come into play during afternoon hours.*
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: 8/6/21
Friday's bond market has opened well in negative territory following clearly unfavorable results in today's key economic data. Stocks are mixed with the Dow up 90 points and the Nasdaq down 47 points. The bond market is currently down 18/32 (1.28%), which should push this morning's mortgage rates higher by another .125 - .250 of a discount point.
This morning's major economic release was July's Employment report that showed the U.S. unemployment rate dropped to 5.4% from 5.9% in June and 943,000 new jobs were added to the economy last month. Both readings were stronger than expected (5.7% and 900,000) and the unemployment rate is the lowest since March 2020. There were also upward revisions to June and May's payrolls numbers that added 119,000 jobs to previous estimates.
Even the more bond influential average earnings reading came in stronger than expected, up 0.4% compared to forecasts of 0.3%. The larger increase raises wage inflation fears that make long-term securities, such as mortgage bonds, less appealing to investors.
We can't find much in today's report to label as good news for bonds and mortgage rates. The employment sector draws plenty of attention when it comes to gauging economic strength. Today's report is far short of a blowout, but since all three primary headline numbers showed stronger employment activity than analysts were expecting, it is easy to call the report bad news. As a result, the benchmark 10-year Treasury Note yield is now nearing what was a fairly strong resistance level of 1.31%. If it moves above that point, we should see the start of an upward trend in yields and mortgage pricing on top of the increases from the past couple of days.
Next week brings us a handful of economic releases and other events that are expected to influence mortgage rates. The week starts Monday with nothing of importance scheduled. The rest of the calendar includes two highly important inflation readings, along with a few moderately important reports and a couple of Treasury auctions that may come into play during afternoon hours. 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... Lock 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.*
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
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