August 27th, 2021 1:37 PM by T. Fanning
Hi, I hope you had a great week.
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 ended the week mixed, but with only minor changes. Next week starts off light with nothing of importance scheduled for Monday. However, the rest of the is pretty busy in terms of economic releases scheduled that may influence mortgage rates. The most important data will come later in the week when the monthly ISM manufacturing index and Employment reports are posted.*
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.homeloanmortgageco.com/mortgageprograms
As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!
Last Updated: 8/27/21
Friday's bond market has opened in positive territory, due mostly to encouraging words from a Fed speech this morning. Stocks liked what was said also, pushing the Dow higher by 198 points and the Nasdaq up 107 points. The bond market is currently up 11/32 (1.32%), which should improve this morning's mortgage rates by approximately .125 - .250 of a
discount point if compared to Thursday's early pricing.
The first of this morning's three relevant events was the release of July's Personal Income and Outlays report at 8:30 AM ET. It showed a 1.1% jump in income and a 0.3% rise in spending. The income reading was much stronger than expected, indicating consumers had more money to spend than they did in June. Offsetting that bad news was the lower than predicted spending reading, while the inflation reading within the data that the Fed relies on pegged forecasts. The mixed readings cause us to label the data neutral to slightly negative for mortgage rates.
Closing out this week's economic data was the University of Michigan's revised Index of Consumer Sentiment for August at 10:00 AM ET. It came in at 70.3, falling between the preliminary reading from two weeks ago of 70.2 and forecasts of 70.7. The modest increase points towards slightly stronger consumer confidence in their own financial situations, but not as strong as expected. Therefore, we can consider the data to be slightly favorable for bonds and mortgage rates.
Fed Chairman Powell's speech at the Jackson Hole Fed conference yielded comments that were taken as good news for bonds. His words eased concerns about how soon the Fed may start tapering their bond buying program that helps keep the bond market liquid (and mortgage rates lower). He suggested that he favors waiting until the economy makes further progress in the recovery before starting to pull back on the amount of monthly bond purchases and stated that beginning that process too soon would be harmful to the economy. His voice carries a lot of weight in the markets, so we are seeing a positive reaction to his speech this morning.
Next week starts off light with nothing of importance scheduled for Monday. However, the rest of the is pretty busy in terms of economic releases scheduled that may influence mortgage rates. The most important data will come later in the week when the monthly ISM manufacturing index and Employment reports are posted. 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.*
*http://www.hlmcolorado.com/DailyRateAdvisory
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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