The Home Loan Mortgage Blog



Hey, I hope you had a great Thanksgiving!

The Federal Housing Finance Agency raised the maximum conforming loan limit for a single family property to $548,250. Most lenders are now accepting new loans with the higher loan limit.

Rates were mixed this week, with the changes being fairly minimal. 
Next week does not have a large number of economic reports scheduled for release, but most of what is set to be posted is considered to be important. They will begin late Tuesday morning with November's ISM manufacturing index and end with the almighty monthly Employment report for November early Friday 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: 11/27/20

Friday's bond market has opened in positive territory despite a lack of economic news to drive trading. Stocks are showing gains of 51 points in the Dow and 103 points in the Nasdaq. The bond market is currently up 8/32 (0.85%), but weakness late Wednesday should keep this morning's mortgage rates nearly unchanged.

Wednesday afternoon's release of the minutes from the Nov 4-5 FOMC meeting didn't give us any significant surprises but did bring a couple bits of important information. One was the fact they will hold their current monthly bond buying program at $120 billion per month, helping to keep the mortgage market liquid. Secondly, they discussed options on how to improve guidance to the markets about future bond buying plans. This would help remove surprise changes in their purchases at the time they are bought. The result would be less volatility in bonds that is caused by unannounced changes in the Fed purchases.

They also signaled the Fed will likely taper and possibly end bond purchases altogether before they start raising key short-term interest rates, which is expected to take place near the end of 2023. Overall, there were no major surprises but enough information to draw attention of bond traders. Bonds did move in the wrong direction after the minutes were posted at 2:00 PM ET. However, they had already weakened from morning levels before they were posted, and it was not enough of a move to fuel widespread intraday rate changes.

We have no relevant economic data scheduled for release today. If there is an intraday revision to mortgage pricing, it likely will be due to a sizable move in stocks- especially since many firms are on skeleton staff today. That creates thin or light trading that causes a stronger reaction to any headlines than they may usually have.

The markets will close early today with stocks closing at 1:00 PM ET and the bond session ending at 2:00 PM ET. All markets will reopen for regular trading hours Monday morning.

Next week does not have a large number of economic reports scheduled for release, but most of what is set to be posted is considered to be important. They will begin late Tuesday morning with November's ISM manufacturing index and end with the almighty monthly Employment report for November early Friday morning. 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 November 27th, 2020 12:44 PM


TGIF!

A solid week for rates; rates ended the week lower. 
Next week brings us a large handful of events that we will be watching in addition to the Thanksgiving holiday. The activities start Monday afternoon with a Treasury auction and conclude Wednesday afternoon with the minutes from this month's FOMC meeting. All of the events take place over just three days due to the holiday schedule.*

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: 11/20/20

Friday's bond market has opened flat with little in terms of economic data to drive trading. Stocks are showing losses of 100 points in the Dow and 8 points in the Nasdaq. The bond market is currently down 1/32 (0.84%), which should keep this morning's mortgage rates close to Thursday's early pricing.

There was no relevant economic data posted this morning. We saw bonds strengthen overnight following news that the Treasury Secretary asked the Federal Reserve to return $455 billion that was currently not being used in its stimulus lending programs for businesses. Even though the funds were not in use at the moment, the markets felt that it was available if the Fed needed to further help businesses. The fact that it was a tool being removed from the Fed's arsenal to boost the economy was favorable for bonds. However, the reaction to the news changed once the markets opened, leaving us nearly unchanged from yesterday's close.

Next week brings us a large handful of events that we will be watching in addition to the Thanksgiving holiday. The activities start Monday afternoon with a Treasury auction and conclude Wednesday afternoon with the minutes from this month's FOMC meeting. All of the events take place over just three days due to the holiday schedule. 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...
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 November 20th, 2020 12:39 PM


Hey, I hope you've had a good week!

Rates ended the week mixed. 
Next week has only a few relevant monthly economic reports scheduled for release with a couple being housing related. The most important release, Retail Sales, doesn't fall into that category though. Monday has nothing we need to be concerned with, meaning we can expect weekend news and stock direction to move bonds 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: 11/13/20

Friday's bond market has opened relatively flat despite favorable economic news. Stocks may be contributing to this morning's sluggish start in bonds with the Dow up 230 points and the Nasdaq up 76 points. The bond market is currently down 1/32 (0.88%), but strength late yesterday should improve this morning's mortgage rates by approximately.125 of a discount point. If you saw an intraday improvement late yesterday, you likely will see no change this morning.

Thursday's 30-year Treasury Bond auction was mostly uneventful. The benchmarks we use to gauge investor demand in the securities showed an average level of interest compared to other recent auctions. The results of the sale had little influence on late trading yesterday. Even though we saw bonds rally before closing, the biggest moves came well after the auction results were posted.

What likely fueled the bond rally was afternoon selling in stocks and somewhat favorable comments from Fed Chairman Powell about how the economy will look going forward. Neither the size of the downward move in stocks nor Chairman Powell's comments appear to be significant enough to cause the rally single-handedly. However, combined, it was enough for bond traders to take the day's early gains to another level. This caused many lenders to revise rates lower before closing.

October's Producer Price Index (PPI) was released at 8:30 AM ET this morning, revealing a 0.3% rise in the overall reading and a 0.1% increase in the core data. The overall reading slightly exceeded forecasts, but the core data was a bit softer than expectations. These readings offset each other and show that inflationary pressures remain subdued at the producer or manufacturing level of the economy. Rising inflation makes long-term securities, such as mortgage bonds, less appealing to investors. Therefore, we can consider the report neutral to slightly favorable for mortgage rates.

November's preliminary reading of the University of Michigan's Index of Consumer Sentiment was announced at 10:00 AM ET this morning. It came in at 77.0, down from October's 81.8 and lower than expectations. The decline is a sign that consumers are a little more concerned about their own financial situations this month than last. Since waning confidence often translates into weaker levels of consumer spending, we can consider the report favorable for bonds and mortgage rates.

Next week has only a few relevant monthly economic reports scheduled for release with a couple being housing related. The most important release, Retail Sales, doesn't fall into that category though. Monday has nothing we need to be concerned with, meaning we can expect weekend news and stock direction to move bonds as the new week begins. 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 November 13th, 2020 11:45 AM


Hi, happy Friday!

Rates had another good week, ending lower across the board. 
Next week has only a couple of monthly reports scheduled for release, but they include two important inflation readings. It is a holiday-shortened week due to the Veteran's Day holiday Wednesday. There is nothing of relevance set for Monday, meaning we can expect weekend and election news to drive trading. Stocks have been extremely active recently, so look for them to influence bond trading - especially if they go into selling mode.*

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: 11/6/20

Friday's bond market has opened in negative territory following stronger than predicted employment data. The stock markets are giving back a small portion of their recent gains with the Dow down 165 points and the Nasdaq down 141 points. The bond market is currently down 19/32 (0.83%), which should push this morning's mortgage rates higher by approximately .125 of a discount point compared to Thursday's pricing.

This week's calendar closed with the release of October's Employment report at 8:30 AM ET. It revealed that 638,000 new jobs were added back to the economy and that the unemployment rate fell to 6.9% from September's 7.9%. There were bits of favorable data in the report, but the two headline readings are taking centerstage. Both numbers indicate the employment sector was stronger than thought last month, making the data bad news for bonds and mortgage rates.

Next week has only a couple of monthly reports scheduled for release, but they include two important inflation readings. It is a holiday-shortened week due to the Veteran's Day holiday Wednesday. There is nothing of relevance set for Monday, meaning we can expect weekend and election news to drive trading. Stocks have been extremely active recently, so look for them to influence bond trading - especially if they go into selling mode. 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 November 6th, 2020 12:50 PM


Happy Halloween Eve! I hope you have a great holiday and weekend!

Rates had a nice week, ending the week lower. 
Next week has several big events scheduled, starting with the ISM manufacturing index late Monday morning and closing with the almighty monthly Employment report Friday. In between there are a couple of moderately important economic reports, an FOMC meeting and of course the Presidential election.*

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: 10/30/20

Friday's bond market has opened in negative territory following stronger than expected economic data. Stocks are also in negative territory with the Dow down 99 points and the Nasdaq down 144 points. The bond market is currently down 4/32 (0.84%), which should push this morning's mortgage rates higher by ,125 of a discount point compared to Thursday's early pricing.

The first of this morning's three economic releases was September's Personal Income and Outlays report at 8:30 AM ET. It showed that income rose 0.9% while spending increased 1.4%. Both readings exceeded expectations of 0.3% and 1.0% respectively, indicating consumers had more money to spend than thought and did spend it. Because those increases are a sign of stronger economic activity, they are bad news for bonds and mortgage rates. However, a key inflation reading that the Fed relies on during their FOMC meetings matched forecasts. It is that reading that may be helping to boost bonds during early trading.

Also at 8:30 AM ET was the release of the 3rd Quarter Employment Cost Index (ECI). It revealed a 0.5% increase, falling short of the 0.6% that was forecasted. We can consider this bit of data favorable for bonds and mortgage pricing because it points towards lower costs for wages and benefits, which eases inflation concerns.

The final report of the day was the University of Michigan's revised Index of Consumer Sentiment for October. They announced a reading of 81.8 that was up from the preliminary reading and slightly higher than expected. This means surveyed consumers felt better about their own financial situations than previously thought. Rising confidence usually translated into higher levels of consumer spending. Therefore, we should consider the data slightly negative for rates.

Next week has several big events scheduled, starting with the ISM manufacturing index late Monday morning and closing with the almighty monthly Employment report Friday. In between there are a couple of moderately important economic reports, an FOMC meeting and of course the Presidential election. 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...
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 October 30th, 2020 12:22 PM

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