December 24th, 2023 1:33 PM by T. Fanning
Hello, I hope you have a very Merry Christmas and Happy Holiday!
Conforming and government loan interest rates improved slightly this week, with only jumbo rates experiencing a small increase. Next week has very little scheduled that we need to be concerned with. We will be producing our weekly preview Sunday evening, but there will be no update Monday.*
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: 12/22/23
Friday's bond market has opened in positive territory following another round of mixed economic data. Stocks are looking to head into the holiday weekend on a positive note with the Dow up 102 points and the Nasdaq up 61 points. The bond market is currently up 3/32 (3.88%), which should keep this morning's mortgage rates close to Thursday's early pricing.
The first of this morning's batch of economic data was November's Durable Goods Orders that revealed a 5.4% jump in new orders at U.S. factories for items such as appliances, airplanes and electronics. This was much stronger than the 2.5% rise that was expected, hinting at manufacturing sector strength. A secondary reading that excludes more costly and volatile transportation products like airplanes, came in stronger than predicted. However, this data is known to be quite volatile from month to month. That means that while we have to label the report bad news for mortgage rates, it isn't having the impact on the markets that a huge variance would have from other reports.
Good news came in the second early morning release. The Fed's preferred inflation reading (PCE index) in November's Personal Income and Outlays report came in lower than forecasts, indicating weaker than thought inflationary pressures in the economy. Both the overall PCE reading and the trimmed down core PCE showed weaker readings than analysts were expecting. The other headline points in the report showed personal income rose 0.4% and spending increased 0.2%, pegging forecasts. Since the inflation readings were softer than expected and the others showed no surprises, we can consider the report good news for bonds and mortgage pricing.
There were also two late morning economic releases today. December's revised University of Michigan Index of Consumer Sentiment was announced at 69.7, nearly matching expectations. This was slightly higher than the initial reading of 69.4 from two weeks ago, indicating surveyed consumers were a tad more optimistic about their own financial situations than thought earlier in the month. That said, it wasn't a surprise to analysts, meaning it has had no influence on this morning's mortgage pricing.
Closing out this week's calendar was November's New Home Sales figures that showed there were far fewer sales of newly constructed homes than predicted. This is surprising due to the noticeable drop in mortgage rates last month. As a sign of housing sector weakness, albeit just a small portion of the sector, the data is good news for rates.
Also worth noting is the fact the bond market will close at 2:00 PM ET today ahead of Monday's Christmas Day holiday. Stocks will trade a full day today but will also be closed Monday. The markets will reopen for regular trading Tuesday morning. This may lead to some pressure in bonds later today as traders protect themselves over the long weekend, possibly leading to a slight revision to rates before the end of the shortened day.
Next week has very little scheduled that we need to be concerned with. We will be producing our weekly preview Sunday evening, but there will be no update Monday. We would like to wish everyone a safe and wonderful holiday weekend!
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.*
*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
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.