January 26th, 2024 12:46 PM by T. Fanning
Hi, I hope you’re having a good day!
Rates ended the week slightly lower. Next week will be busier than this week was for the financial and mortgage markets. The week's calendar has the highly important new month economic reports such as the ISM manufacturing index and monthly Employment report along with some moderately influential releases. We also have the much-anticipated FOMC meeting that has the potential to heavily move the markets and mortgage rates. The key will be hints about when the Fed may start lowering key short-term rates, or lack of. We should see the most movement in mortgage pricing the second half of the week. Monday has nothing scheduled that we need to be concerned with.*
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
As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!
Last Updated: 1/26/24
Friday's bond market has opened in negative territory despite somewhat favorable news in this morning's inflation data. Stocks are mixed but calm with the Dow up 20 points and the Nasdaq down 39 points. The bond market is currently down 11/32 (4.16%). Fortunately, gains late in the day yesterday should allow this morning's mortgage rates to be slightly lower than Thursday's early pricing. If you saw an intraday improvement yesterday, you should see an increase this morning.
Yesterday's 7-year Treasury Note auction went better than Wednesday's 5-year Note sale. The benchmarks pointed to investor demand that was slightly stronger than other recent sales, in contrast to Wednesday's poor interest. Bonds had started to weaken between morning pricing and the 1:00 PM ET results announcement but then rebounded after. It was enough of a move to see a wide range of lenders issuing an intraday improvement in rates during afternoon trading.
Today's sole economic report was December's Personal Income and Outlays data at 8:30 AM ET. It showed a 0.3% rise in income and a 0.7% jump in spending. The income reading pegged forecasts while the spending number was higher than the 0.4% that was expected. The more important data was the inflation readings within the report that the Fed relies heavily on. Neither the monthly overall nor core PCE reading gave us a surprise, both rising 0.2% during the month. A bit of good news came in the year over year PCE readings that fell below 3.0% for the first time since March of 2021, indicating inflation is slowly retreating towards the Fed's preferred rate of 2.0%.
Next week will be busier than this week was for the financial and mortgage markets. The week's calendar has the highly important new month economic reports such as the ISM manufacturing index and monthly Employment report along with some moderately influential releases. We also have the much-anticipated FOMC meeting that has the potential to heavily move the markets and mortgage rates. The key will be hints about when the Fed may start lowering key short-term rates, or lack of. We should see the most movement in mortgage pricing the second half of the week. Monday has nothing scheduled that we need to be concerned with. 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
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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