September 3rd, 2021 1:14 PM 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 again ended the week mixed. Next week brings us little in terms of relevant economic data with just one important monthly report to digest. Other events include the Fed Beige Book and a couple of Treasury auctions mid-week. There is nothing of importance scheduled for the early part, meaning we can expect weekend news to be the biggest influence on bond trading and mortgage pricing as the new week begins.*
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: 9/3/21
Friday's bond market has opened well in negative territory following the release of August's Employment report. Stocks are mixed with the Dow down 112 points and the Nasdaq up 30 points. The bond market is currently down 15/32 (1.33%), but a little strength late yesterday should keep this morning's mortgage rates close to Thursday's early pricing.
This morning's key Employment report showed some surprising numbers, both positive and negative. The August unemployment rate slipped last month 0.2% down to 5.2%, as it was expected to do. It also revealed 235,000 jobs were added back to the economy during the month. This was a far cry from the 745,000 that was forecasted and shows the employment sector still has plenty of work to do in it's recovery. That number also adds fuel to the theory that the Fed may not need to start tapering their monthly bond purchases as soon as many had predicted.
Bad news came in the third headline number, average earnings, that rose much more than many had thought. The 0.6% rise in earnings doubled forecasts and indicates wage inflation pressures are much stronger than feared. Because wage inflation can easily spread to other parts of the economy, this reading was very bad news for bonds and mortgage rates. The thought process is that if inflation was only a temporary issue, it should have started to wane, not spike in earnings.
Even though we got conflicting employment readings this morning, traders appear to be primarily focused on the earnings number. Hence the negative open in bonds and mortgage pricing. The benchmark 10-year Treasury Note yield is again at a pivotal resistance level. If it stays above 1.32%, we should take that as a sign bond yields are likely to move higher, bringing mortgage rates with them. Hopefully, we will see the 10-year yield slip below that threshold before closing today, easing the threat of higher rates.
Next week brings us little in terms of relevant economic data with just one important monthly report to digest. Other events include the Fed Beige Book and a couple of Treasury auctions mid-week. There is nothing of importance scheduled for the early part, meaning we can expect weekend news to be the biggest influence on bond trading and mortgage pricing as the new week begins. 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...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.*
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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