The Home Loan Mortgage Blog

Hello, I hope you had a great week.

The Federal Reserve decided to keep the Fed funds rate the same, as expected. But the interesting part is their prediction for the future: they thought about lowering rates three times this year. However, some decision-makers changed their minds compared to December – now they’re saying, “Maybe not as many discounts.” Why? They want more proof that prices (inflation) are behaving before they start making borrowing cheaper. So, in a nutshell: the Fed held steady, but they’re keeping an eye on things. Overall, interest rates reacted positively to the news, ending the week lower. Next week has plenty scheduled to drive bond trading and mortgage rates, but only one report is considered to be able to drastically move the markets and it comes Friday when they will be closed for the Good Friday holiday. The bond market actually closes early Thursday ahead of the holiday. In addition to the economic releases, there are also two moderately influential Treasury auctions and more Fed speaking engagements that may have an impact on bonds. The week's economic calendar starts Monday with the release of February's New Home Sales report, which is more or less the least important report of the week.*

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: 3/22/24

Friday's bond market has opened well in positive territory as overnight gains and the recent favorable momentum extends into this morning's session. Stocks are much calmer with the Dow down 54 points and the Nasdaq up 11 points. The bond market is currently up 14/32 (4.21%). This should improve this morning's mortgage rates by approximately .250 - .375 of a discount point if compared to Thursday's early pricing.

The only things we are watching today are the handful of Fed member speeches that are going on. Now that the FOMC meeting is behind us, so is the mandatory two-week quiet period where Fed members were not allowed to speak publicly. Chairman Powell had one early this morning that field to yield any surprises. Market participants will be watching their words, but it is not likely that we will get anything substantive that will affect rates.

Next week has plenty scheduled to drive bond trading and mortgage rates, but only one report is considered to be able to drastically move the markets and it comes Friday when they will be closed for the Good Friday holiday. The bond market actually closes early Thursday ahead of the holiday. In addition to the economic releases, there are also two moderately influential Treasury auctions and more Fed speaking engagements that may have an impact on bonds. The week's economic calendar starts Monday with the release of February's New Home Sales report, which is more or less the least important report of the week. Look for details on it and the rest of the 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...
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
                                                  

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