The Home Loan Mortgage Blog



Hey, I hope you have a good, long weekend and great 4th!

Rates were mixed this week, with conventional, conforming rates ending slightly down and gov't and jumbo rates ending a tad higher. 
The bond market will close at 2:00 PM ET today while stocks are set for a full session. All the markets will be closed tomorrow for the Independence Day holiday and will reopen for regular trading Monday morning. The pre-holiday early close sometimes creates pressure in the bond market as traders look to protect themselves while U.S. markets are closed for the extended weekend. Because the markets will be closed and there is no relevant economic data scheduled for release, this report will not be updated tomorrow morning.*

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: 7/2/20

Thursday's bond market has opened in negative territory following the release of today's key economic data. Stocks are rallying on the same data, pushing the Dow up 464 points and the Nasdaq up 145 points. The bond market is currently down 8/32 (0.70%), but we should see little change in this morning's mortgage rates if comparing to Wednesday's early pricing.

Yesterday's afternoon release of the minutes from the June 9-10th FOMC meeting did not give us any big surprises. They showed that the Fed is prepared to keep key short-term interest rates at current levels for the foreseeable future and that there is a consensus that further financial assistance from Congress would be helpful in preventing a long-term pandemic impact on the economy. Bonds moved slightly lower in price after the minutes were posted at 2:00 PM ET, but it was not enough for lenders to revise rates higher before closing.

Today's major economic release was June's Employment report at 8:30 AM ET that showed 4.8 million jobs were recovered during the month while the unemployment rate slipped to 11.1%. Forecasts were calling for 3.25 million new jobs and a 12.2% unemployment rate, making both readings bad news for bonds and mortgage rates as they indicate the employment sector was stronger than thought. While Treasury bonds have reacted negatively to the news, mortgage bonds have held steady. It is apparent that traders did not have a lot of faith in the forecasts, so this morning's data didn't come as a big surprise.

The second report of the morning was last week's unemployment figures. They revealed that 1.427 million new claims for unemployment benefits were filed last week, down slightly from the previous week's revised 1.482 million. However, they were still a little higher than expectations. That allows us to consider the data favorable for bonds and mortgage pricing as it points towards employment weakness.

May's Factory Orders report was posted late this morning. It showed that new orders at U.S. factories jumped 8.0%, matching expectations. This is normally moderately important data because a good part of it is included in the Durable Goods Orders report that precedes this release. It has had no impact on today's bond trading or mortgage rates.

The bond market will close at 2:00 PM ET today while stocks are set for a full session. All the markets will be closed tomorrow for the Independence Day holiday and will reopen for regular trading Monday morning. The pre-holiday early close sometimes creates pressure in the bond market as traders look to protect themselves while U.S. markets are closed for the extended weekend. Because the markets will be closed and there is no relevant economic data scheduled for release, this report will not be updated tomorrow morning. Next week's light calendar will be addressed 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 July 2nd, 2020 4:03 PM


Happy Friday, I hope you had a good week!

Rates were down across the board. 
Next week brings us the release of a couple of highly important releases, including the ISM manufacturing index Wednesday and the monthly Employment report Thursday, which was moved from the traditional Friday release since the markets will be closed ahead of Saturday's Independence Day holiday. There are also some moderately important reports scheduled, but none are set for Monday.*

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: 6/26/20

Friday's bond market has opened in positive territory with stocks showing sizable gains and no major surprises in this morning's economic data. Stocks are in selling mode with the Dow down 330 points and the Nasdaq down 103 points. The bond market is currently up 7/32 (0.66%), which should improve this morning's mortgage rates by approximately .125 of a discount point.

May's Personal Income and Outlays report was posted at 8:30 AM ET, revealing a 4.2% decline in income and an 8.2% jump in spending. The income reading was not as weak as expected but still a sizable drop. Spending was close to forecasts and the core PCE index that measures inflation pegged expectations. This morning's headline numbers allow us to consider the data neutral for mortgage rates.

Also posted this morning was the University of Michigan's revised Index of Consumer Sentiment for June at 10:00 AM. It came in at 78.1, down from the preliminary reading of 78.9. The lower reading indicates that surveyed consumers were a little less optimistic about their own financial situations than previously thought. That makes the data favorable for the bond market and mortgage rates since waning confidence usually translates into softer levels of consumer spending.

Next week brings us the release of a couple of highly important releases, including the ISM manufacturing index Wednesday and the monthly Employment report Thursday, which was moved from the traditional Friday release since the markets will be closed ahead of Saturday's Independence Day holiday. There are also some moderately important reports scheduled, but none are set for Monday. Look for details on all of next week's activities that are relevant to mortgage rates 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 June 26th, 2020 9:39 AM


Hi, I hope you had a good week and have a good weekend.

Rates were up this week. 
Next week brings us the release of a good number of relevant economic reports in addition to a couple of moderately relevant Treasury auctions. The week starts with Existing Home Sales data late Monday morning that will give us some insight into the housing market, but the more important releases are set for the latter days.*

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: 6/19/20

Friday's bond market has opened in negative territory with stocks showing strong gains and little else to drive trading this morning. The Dow is currently up 253 points while the Nasdaq is up 106 points. The bond market is currently down 5/32 (0.72%), which should push this morning's mortgage rates slightly higher.

There is nothing scheduled for release today that we need to be concerned with. There are several Fed-member speaking engagements taking place today though that always carry the potential to influence the markets. Fed Vice Chairman Quarles is scheduled to speak at noon while Chairman Powell is set for 1:00 PM ET at a different event. Neither topic is considered to be highly important to mortgage rates, but their appearances will be watched closely for any new tidbits of information about the economy and future monetary policy plans in the future.

Next week brings us the release of a good number of relevant economic reports in addition to a couple of moderately relevant Treasury auctions. The week starts with Existing Home Sales data late Monday morning that will give us some insight into the housing market, but the more important releases are set for the latter days. Look for details on all of next 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.*

*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 June 19th, 2020 11:12 AM


Hi, I hope you had a good week!

Rates are back near all-time lows! 
Next week has only a couple of relevant monthly economic reports for the markets to digest. One of them (Retail Sales) is considered to be highly important though. Monday has nothing of importance scheduled that is likely to affect rates. We can expect weekend news and stock movement to drive bond trading and mortgage pricing as the week begins.*

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: 6/12/20

Friday's bond market has opened in negative territory, continuing yesterday's afternoon selling. The major stock indexes are showing strong gains, recovering a good portion of yesterday's sell-off that pushed the Dow lower by 1,861 points. It currently is up 767 points while the Nasdaq is up 239 points. The bond market is currently down 13/32 (0.70%), which with yesterday's afternoon weakness should cause this morning's mortgage rates to be higher than Thursday's early pricing by approximately .250 - .375 of a discount point. Some lenders revised rates higher before closing yesterday, so the size of the increase this morning will depend on whether or not you saw a change Thursday afternoon.

Yesterday's 30-year Treasury bond auction was uneventful with the benchmarks showing an average level of interest in the securities. The bond and mortgage markets had little reaction to the 1:00 PM ET announcement. We did see weakness late in the day that caused some intraday revisions to rates, but it was not a result of the auction.

June's preliminary reading to the University of Michigan's Index of Consumer Sentiment was posted at 10:00 AM ET today. It came in at 78.9, up from May's final reading of 72.3 and higher than expected. The increase means surveyed consumers felt better about their own financial situations than last month. Because rising confidence usually translates into stronger levels of consumer spending, we have to consider today's release bad news for bonds and mortgage rates.

Next week has only a couple of relevant monthly economic reports for the markets to digest. One of them (Retail Sales) is considered to be highly important though. Monday has nothing of importance scheduled that is likely to affect rates. We can expect weekend news and stock movement to drive bond trading and mortgage pricing as the week begins. 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 June 12th, 2020 11:39 AM


Happy Friday,

Rates were up this week. 
Next week has only a couple of monthly economic reports scheduled that are expected to affect rates in addition to another FOMC meeting and two Treasury auctions. There is nothing of importance scheduled for Monday, meaning we can expect weekend headlines to drive trading as the new week begins.*

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: 6/5/20

Friday's bond market has opened sharply lower following a huge surprise in this morning's sole economic report. Stocks are reacting to the same report, pushing the Dow up 703 points and the Nasdaq up 154 points. The bond market is currently down 31/32 (0.92%), which should push this morning's mortgage rates higher by approximately .250 of a discount point.

This morning's major economic news was the release of May's Employment report at 8:30 AM ET. It revealed that the U.S. unemployment rate stood at 13.3% last month, down from April's 14.7%. Forecasts were all calling for an increase, not a decline, with the consensus above 19%. The other shocking number was the 2.51 million jobs recovered during the month when approximately 8 million jobs were thought to be lost. These numbers indicate that the employment sector, and possibly the overall economy, are in much better shape than previously thought.

It is worth noting that the unemployment rate is still at a terribly high 13.3% and it is unclear how the Paycheck Protection Program (PPP) is affecting these numbers. Those loans are starting to run out now while the report's data was compiled back in the week of May 12th. It will be interesting to see what June's numbers look like when more businesses have fully reopened and no longer have free payroll for 100% of their employees.

For today though, the report was incredibly bad news for bonds and mortgage rates. At the same time, it also acts as fuel to extend the recent stock market rally that many were beginning to question. That said, mortgage bonds are well off their earlier lows after the initial knee-jerk reaction to the headlines. That has helped to limit the amount of an increase in this morning's mortgage rates. Hopefully, this will hold throughout the day to keep rates at this morning's levels. If they do move back towards this morning's low points, we will likely see an intraday increase to mortgage rates.

Next week has only a couple of monthly economic reports scheduled that are expected to affect rates in addition to another FOMC meeting and two Treasury auctions. There is nothing of importance scheduled for Monday, meaning we can expect weekend headlines to drive trading as the new week begins. Look for details on next week's 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 June 5th, 2020 9:56 AM

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