February 12th, 2021 1:22 PM by T. Fanning
Hi, I hope you’re having a good Friday.
Rates were mixed this week; conforming loans rates slightly improved; government loan rates slightly deteriorated. Next week has only a couple of relevant economic reports for the markets to digest, in addition to two Treasury auctions that have the potential to influence mortgage rates. The week starts Monday with nothing of importance scheduled that we need to be concerned with. We should see stocks contribute to bond trading and mortgage rate movement a good part of next week.*
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.hlmcolorado.com/mortgageprograms
As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!
Last Updated: 2/12/21
Friday's bond market has opened in negative territory even though we got some favorable economic news and stocks are showing minor losses. The Dow is currently down 42 points while the Nasdaq has lost 16 points. The bond market is currently down 10/32 (1.19%), which should push this morning's mortgage rates higher by approximately .125 - .250 of a discount point if comparing to Thursday's early pricing.
Today's sole relevant economic report was February's preliminary reading to the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. It came in at 76.2, falling short of the 80.8 that was expected and lower than January's final reading of 79.0. The decline means fewer surveyed consumers felt better about their own financial situations than did last month. Since waning confidence usually translates into softer levels of consumer spending that fuels economic growth, we should consider the data favorable for mortgage rates.
The markets will be closed Monday for the President's Day holiday and reopen Tuesday morning. We sometimes see pressure in bonds ahead of these holidays as investors move to protect themselves from potential global events over the long weekend. It should not be a significant issue for rates but looks to be a contributing factor to this morning's early bond weakness.
Next week has much more scheduled than this week did. It has another important inflation index (PPI) and the highly influential Retail Sales report along with a few other economic releases. In addition to the data, there is also another Treasury auction set to be held and the release of the minutes from this month's FOMC meeting. The big day of the week will be Wednesday as it has the more important data and a couple of afternoon events.
If I were considering financing/refinancing a home, I would....
Lock if my closing were taking place within 7 days...Float 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.**http://www.hlmcolorado.com/DailyRateAdvisory LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
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