January 12th, 2024 3:46 PM by T. Fanning
Happy Friday!
Earlier this week, inflation numbers came in a little higher than expected. Although the numbers were disappointing, the market is still betting on the Feds to cut rates in March. Mortgage rates ended the week slightly lower. Next week's calendar is short a day due to the markets being closed Monday for the Martin Luther King Jr holiday. They will be trading a full day today and will reopen Tuesday morning. We have a handful of relevant economic reports scheduled for release between Wednesday and Friday, including a highly important consumer spending report. There also is a Treasury auction that may influence rates one afternoon.*
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); 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: 1/12/24
Friday's bond market has opened in positive territory after this morning's economic data. Stocks are mixed with the Dow down 99 points and the Nasdaq up 8 points. The bond market is currently up 10/32 (3.93%), which with yesterday's fairly strong rally should improve this morning's mortgage rates by approximately .250 - .375 of a discount point. If you saw an intraday improvement before closing Thursday, you should see a smaller move this morning.
Yesterday's 30-year Treasury Bond auction drew mixed results with some of the benchmarks showing a decent demand from investors and others not so much. Despite the lack of an overwhelmingly strong auction and higher consumer inflation numbers that were released earlier in the day, bonds managed to stage a nice during late afternoon trading. It was enough of a move to cause widespread intraday improvements to mortgage rates.
December's Producer Price Index (PPI) was posted early this morning, following yesterday's stronger than expected Consumer Price Index (CPI). Today's version revealed inflationary pressures at the producer or wholesale level of the economy were softer than thought, contradicting yesterday's consumer level readings. The overall PPI fell 0.1% while the more important core reading was unchanged. Analysts were expecting to see increases of 0.1% and 0.2% respectively. Furthermore, the year-over-year increases for both were lower than predicted. These readings point to easing inflation in parts of the economy, making them good news for bonds and mortgage rates.
Next week's calendar is short a day due to the markets being closed Monday for the Martin Luther King Jr holiday. They will be trading a full day today and will reopen Tuesday morning. We have a handful of relevant economic reports scheduled for release between Wednesday and Friday, including a highly important consumer spending report. There also is a Treasury auction that may influence rates one afternoon. 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.*
*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
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