June 16th, 2023 1:27 PM by T. Fanning
Hi, I hope you’ve had a great week!
The Feds held rates steady earlier this week but indicated a few more increases might be on the horizon. Rates responded by ending the week mixed. In between those two days, there are a few things that will draw plenty of attention in the markets. The most obvious is semi-annual Fed testimony before Congress Wednesday and Thursday morning. Also on the Fed topic are scheduled speaking engagements by Fed members now that the FOMC meeting is behind us. We also have a Treasury auction midweek that could affect afternoon trading one day.*
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: 6/16/23
Friday's bond market has opened in negative territory following stronger than expected economic news. Stocks are mixed with the Dow up 61 points and the Nasdaq down 11 points. The bond market is currently down 10/32 (3.75%), which should erase yesterday's late rally and cause this morning's mortgage rates to be higher than Thursday's early pricing by approximately .125 of a discount point. If you saw an intraday improvement yesterday as bonds moved higher throughout the day, you should see a larger increase this morning than those who did not get a revision.
This morning's sole relevant economic release was the University of Michigan's preliminary Index of Consumer Sentiment for June at 10:00 AM ET. They announced a reading of 63.9 that exceeded forecasts of 60.0 and was higher than May's 59.2. The increase means surveyed consumers felt better about their own financial situations than they did last month. Rising confidence is believed to lead to higher levels of consumer spending that fuel economic growth. Therefore, we have to consider the report bad news for bonds and mortgage rates.
Next week's calendar is pretty light in terms of economic reports, but has several other events scheduled that may be influential to rates. The monthly data that is scheduled is mostly related to housing and usually does not carry a high level of significance. The week starts with the markets closed for the Juneteenth Holiday Monday and closes with nothing scheduled that is relevant to mortgage pricing Friday. There is no early close today, ahead of the holiday.
In between those two days, there are a few things that will draw plenty of attention in the markets. The most obvious is semi-annual Fed testimony before Congress Wednesday and Thursday morning. Also on the Fed topic are scheduled speaking engagements by Fed members now that the FOMC meeting is behind us. We also have a Treasury auction midweek that could affect afternoon trading one day. Look for details on 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... 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
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