The Home Loan Mortgage Blog



Happy Friday! 

Rates were up a bit from last Friday's numbers. Next week gives us a couple of economic reports for the markets to digest in addition to the minutes from last month's FOMC meeting and a fairly large number of Fed speaking engagements. The markets will be closed Monday for the President's Day holiday.*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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/friends/family/potential buyers/borrowers!
                   

Last Updated: 2/15/19

Friday's bond market has opened in negative territory following mixed economic news. Stocks are pressuring bonds with sizable gains but not as much as we would expect. The Dow is currently up 335 points while the Nasdaq is up 36 points. The bond market is currently down 4/32 (2.67%), which may cause a slight increase to this morning's mortgage rates.

January's Industrial Production data was released at 9:15 AM ET this morning, revealing a 0.6% decline in output at U.S. factories, mines and utilities. This was well below expectations of a 0.1% rise and indicates that parts of the manufacturing sector softened last month. That is good news for mortgage rates since it points towards weaker economic activity. However, this is only a moderately important report. Accordingly, we have seen just a slight reaction in mortgage pricing.

Today's second release was February's preliminary reading to the University of Michigan's Index of Consumer Sentiment at 10:00 AM. This release gave us the bad news of the morning. It showed a reading of 95.5 that was higher than forecasts and a good-sized increase from December's 91.2. The increase means surveyed consumers felt better about their own financial and employment situations than they did in December. That is taken as a negative for bonds and mortgage rates because a higher level of confidence usually translates into stronger consumer spending that fuels economic growth. Fortunately, this is only considered to be a moderately influential release, preventing a heavy impact on rates.

Next week gives us a couple of economic reports for the markets to digest in addition to the minutes from last month's FOMC meeting and a fairly large number of Fed speaking engagements. The markets will be closed Monday for the President's Day holiday. Look for details on the week's entire calendar 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.*

*http://www.hlmcolorado.com/DailyRateAdvisory




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on February 15th, 2019 12:27 PM


Hello, 

Another good week for interest rates! Next week brings us a batch of important economic data, including a couple of inflation readings and a key measure of consumer spending. All of the week's activities take place the middle and latter days, leaving weekend news and stocks to drive trading early in the 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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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/friends/family/potential buyers/borrowers!
                   

Last Updated: 2/8/19

Friday's bond market has opened in positive territory as the downward trend in yields continues. Stocks are helping the cause with the Dow down 191 points and the Nasdaq down 41 points. The bond market is currently up 5/32 (2.63%), which will likely improve this morning's mortgage rates slightly if comparing to Thursday's early pricing.

Yesterday's 30-year Treasury bond auction went better than Wednesday's 10-year Note sale. Several benchmarks used to gauge investor demand for the securities showed a decent level of interest. Overall demand was better than it was for 10-year Notes, but not strong enough to cause intraday improvements to rates. That left the auction as a non-factor in yesterday afternoon's mortgage pricing.

There is nothing of importance scheduled for release today. If we there is a change to mortgage rates, it likely will come from movement in stocks. Generally speaking, stock strength usually pressures bonds and leads to higher mortgage rates. What is good news for bonds and rates is often consider bad news for stocks.

Next week brings us a batch of important economic data, including a couple of inflation readings and a key measure of consumer spending. All of the week's activities take place the middle and latter days, leaving weekend news and stocks to drive trading early in the week. Look for details on all of next week's events 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.*

*http://www.hlmcolorado.com/DailyRateAdvisory




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on February 8th, 2019 10:57 AM


Hi, 

Rates reached their three month lows this week. Next week has a couple of moderately important reports set for release in addition to a couple of Treasury auctions that certainly can influence mortgage rates. There is also a possibility of some of the previously delayed data being added to calendar. We will get December's Factory Orders data Monday morning after being delayed during the shutdown.*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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/friends/family/potential buyers/borrowers!
                   

Last Updated: 2/1/19

Friday's bond market has opened in negative territory following this morning's batch of highly important economic data. Stocks are reacting positively to the data, pushing the Dow higher by 186 points and the Nasdaq up 16 points. The bond market is currently down 14/32 (2.68%), which should push this morning's mortgage rates higher by approximately .125 of a discount point if comparing to Thursday's early pricing. That erases yesterday's afternoon strength that led to some lenders improving rates intraday.

The first of this morning's two major releases was January's Employment report at 8:30 AM ET. This Labor Department data gave us mixed readings on the employment sector. They announced that the U.S. unemployment rate rose 0.1% last month to stand at 4.0% when that it was expected to remain at 3.9%. It also showed that 304,000 new payrolls were added to the economy during the month. The slightly higher unemployment rate is being attributed to the government shutdown, making it a non-factor. And while the payroll number greatly exceeded expectations of 160,000 new jobs, December's payroll number was revised lower by 90,000 (from 312k to 222k). January's payroll number is surprising and indicates a very strong employment sector that is bad news for mortgage rates. However, it is a little difficult to put too much weight into it when we saw a sizable revision to December's whopping number.

We did get a bit of clearly favorable news for bonds in mortgage rates out of this release. That came in the average hourly earnings increase of only 0.1%. Forecasts were calling for a rise between 0.2% and 0.3%. The softer earnings number is a good sign because it should ease wage inflation concerns that have been an issue over the last several months. This reading allows us to call the report neutral for mortgage rates.

The second report of the morning did not give us favorable news at all. The Institute of Supply Management (ISM) released their manufacturing index for January at 10:00 AM ET. It came in at 56.6, higher than the 53.8 that was expected and up from December's revised 54.3. The unexpected increase means that surveyed manufacturing executives were more optimistic about business conditions during the month than many had thought. Because this is a sign of manufacturing sector strength, contradicting the past several months of weakening conditions, this news is negative for mortgage rates. Bonds reacted more to this data than they did the employment news.

Even the least important data of the morning gave us unfavorable results. The University of Michigan's Index of Consumer Sentiment stood at 91.2 for January, exceeding expectations of matching the preliminary reading of 90.7. The increase means surveyed consumers felt better about their own financial conditions than previously thought. Since strengthening sentiment usually means consumers are more apt to spend money that fuels economic growth, this is also bad news for bonds in mortgage rates.

Next week has a couple of moderately important reports set for release in addition to a couple of Treasury auctions that certainly can influence mortgage rates. There is also a possibility of some of the previously delayed data being added to calendar. We will get December's Factory Orders data Monday morning after being delayed during the shutdown. Look for details on all of next week's events 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.*

*http://www.hlmcolorado.com/DailyRateAdvisory




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on February 1st, 2019 11:08 AM


Hi, 

Rates were again mixed this week. Fixed rate loans had a small increase; ARM loans saw a small decrease. Monday is the only day of the week that does not have economic data, but it does bring us the first of those two Treasury auctions that we will be watching. 5-year Notes will be sold Monday, followed by 7-year Notes on Tuesday. There is a strong possibility of seeing an extremely active week for the financial markets and mortgage rates.*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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/friends/family/potential buyers/borrowers!
                   

Last Updated: 1/25/19

Friday's bond market has opened in negative territory as this week's rollercoaster ride continues. Stocks are a big contributor to this morning's bond weakness with the Dow up 267 points and the Nasdaq up 71 points. The bond market is currently down 10/32 (2.74%), which cause this morning's mortgage rates to be slightly higher than Thursday's morning pricing.

There is no relevant economic data being released today. Both reports that were on the calendar have fallen victim to the partial government shutdown (Durable Goods and New Home Sales). If we see an intraday revision to mortgage rates, it likely will be a result of a move in stocks. If the major indexes extended this morning's strong gains, we could see mortgage rates revise slightly lower before the end of the day. On the other hand, if they reversed course and to give back this morning's improvements, mortgage rates should benefit this afternoon.

Next week is extremely busy in terms of economic reports and other events that are expected to influence mortgage rates. In fact, what are arguably the three most important reports are all set to be posted next week. Unfortunately, one of them likely will not happen due to the shutdown. But that still leaves us two highly important economic reports, along with the first FOMC meeting of the new year, which now also includes a press conference with Fed Chairman Powell. In addition to those main events, we also have a decent number of moderately important reports and a couple of Treasury auctions that have the potential to affect mortgage rates.

Monday is the only day of the week that does not have economic data, but it does bring us the first of those two Treasury auctions that we will be watching. 5-year Notes will be sold Monday, followed by 7-year Notes on Tuesday. Look for details on all of the week's activities and Sunday evenings weekly preview. There is a strong possibility of seeing an extremely active week for the financial markets and mortgage rates.

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.*

*http://www.hlmcolorado.com/DailyRateAdvisory




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on January 25th, 2019 10:56 PM


TGIF! 

Rates were mixed this week. USDA and Jumbo rates were down; the other programs finally saw an increase. Next week doesn't have too much scheduled that is expected to influence mortgage rates. The markets will be closed Monday for the Martin Luther King holiday and the most important report of what was scheduled is likely to fall victim to the government shutdown. The remaining data we will get is moderately important at best.*

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% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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/friends/family/potential buyers/borrowers!
                  

Last Updated: 1/18/19

Friday's bond market has opened in negative territory again despite favorable economic news. Stocks are contributing to this morning's weakness by posting gains of 192 points and 59 points in the Dow and Nasdaq respectively. The bond market is currently down 8/32 (2.77%), which should push this morning's mortgage rates higher by approximately .125 of a discount point.

The first of this morning's two economic releases was December's Industrial Production report at 9:15 AM ET. It showed a 0.3% rise in output at U.S. factories, mines and utilities, exceeding expectations of a 0.2% increase. The larger increase makes the data negative for bonds and mortgage rates, but it was only a minor variance in a moderately important report. Therefore, it has not had much of an impact on this morning's bond trading or mortgage pricing.

January's preliminary reading to the University of Michigan's Index of Consumer Sentiment was posted at 10:00 AM ET. This release gave us clearly good news by coming in much lower than expectations. Today's release revealed a 90.7 reading when analysts were expecting to see 96.5. This was also a sizable decline from November's 98.3. The lower reading indicates that surveyed consumers were much less optimistic about their own financial situations than last month. That is good news because weaker levels of confidence likely will lead to softer levels of consumer spending that fuels economic growth. Unfortunately, this report does not carry the significance of some of the other reports we regularly get. That is why we have not seen a stronger reaction to the news.

Next week doesn't have too much scheduled that is expected to influence mortgage rates. The markets will be closed Monday for the Martin Luther King holiday and the most important report of what was scheduled is likely to fall victim to the government shutdown. The remaining data we will get is moderately important at best. Look for details on next week's events 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.*

*http://www.hlmcolorado.com/DailyRateAdvisory




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on January 18th, 2019 1:50 PM

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