March 1st, 2024 1:59 PM by T. Fanning
Hi, I hope you’re having a good week.
Earlier this week, favorable economic data emerged, suggesting a potential slowdown in inflation. As a result, interest rates concluded the week marginally lower. Next week has several economic reports scheduled that are expected to influence mortgage rates, including the almighty monthly Employment report. In addition to the data, there are also two congressional appearances for Fed Chairman Powell. He will be delivering the Fed's highly important semi-annual update on the economy and monetary policy Wednesday and Thursday. There are events scheduled each day except 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: 3/1/24
Friday's bond market has opened in positive territory after this morning's economic data gave us favorable results. Stocks are mixed again with the Dow down 63 points and the Nasdaq up 67 points. The bond market is currently up 6/32 (4.22%), but bond losses late yesterday should keep this morning's mortgage rates close to Thursday's early pricing. If you saw an intraday increase Thursday, you should see a slight improvement in pricing this morning.
Both of this morning's relevant economic reports came at 10:00 AM ET. The Institute for Supply Management (ISM) gave us their February manufacturing index, announcing a 47.8 reading that was much lower than expected. Forecasts had it coming in at 49.5 after January's 49.1. The decline means fewer surveyed manufacturing executives felt business improved during the month than many had thought. As a sign of slower economic activity, this report was very good news for bonds and mortgage rates.
The University of Michigan's revised Index of Consumer Sentiment for February was the other report. They announced a reading of 76.9 after the preliminary reading two weeks ago showed 78.8. The lower reading is a sign that surveyed consumers didn't feel as good about their own financial situations than earlier in the month. Since waning confidence usually translates into softer consumer spending numbers, the decline is also good news for mortgage rates.
Next week has several economic reports scheduled that are expected to influence mortgage rates, including the almighty monthly Employment report. In addition to the data, there are also two congressional appearances for Fed Chairman Powell. He will be delivering the Fed's highly important semi-annual update on the economy and monetary policy Wednesday and Thursday. There are events scheduled each day except Monday. Look for details on all of next week's scheduled 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... 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.*
*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.