The Home Loan Mortgage Blog


Hi, I hope you're having a good Friday.


Another up week for rates. Next week does not have a large number of economic reports or other events scheduled that are expected to influence rates. However, most of the small batch are considered to be important and a couple are extremely relevant to the financial and mortgage markets. The week starts with one of those key reports, the ISM manufacturing index, late Monday morning and closes with the almighty monthly Employment report Friday.*

 

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; 1.50% Down FHA Advantage Program; CHFA Financing; 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, your friends/family/potential buyers/borrowers!


Last Updated: 2/26/21

 

Friday's bond market has opened in positive territory, recovering a good portion of yet another afternoon sell-off in mortgage securities yesterday. Stocks are mixed during early trading with the Dow down 198 points and the Nasdaq up 3 points. The bond market is currently up 11/32 (1.49%), but Thursday's afternoon losses are going to cause this morning's mortgage rates to be higher than yesterday's early pricing by approximately .125 - .250 of a discount point. As bonds tanked, many lenders revised pricing higher before closing. If you did see an intraday increase Thursday afternoon, you should see a noticeable improvement in this morning's pricing.

 

January's Personal Income and Outlays report was posted at 8:30 AM ET, revealing a 10.0% spike in income and a 2.4% rise in spending. The income jump is being attributed to economic stimulus payments that went out and not an organic rise in wages. Spending was close to forecasts, but it also is being skewed by those stimulus payments being spent. The important inflation within the data, that the Fed watches closely, nearly matched expectations. Generally speaking, the report is neutral for bonds and mortgage rates.

 

Also posted this morning was the University of Michigan's revised Index of Consumer Sentiment for February. It came in at 76.8, slightly exceeding forecasts, but still down from the previous estimate. This means surveyed consumers were not as confident in their financial situations as they were last month. Because waning confidence is considered to be an indicator or softer consumer spending numbers in the near future, we can label this report as neutral to slightly favorable for rates.

 

Next week does not have a large number of economic reports or other events scheduled that are expected to influence rates. However, most of the small batch are considered to be important and a couple are extremely relevant to the financial and mortgage markets. The week starts with one of those key reports, the ISM manufacturing index, late Monday morning and closes with the almighty monthly Employment report Friday. 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 by T. Fanning on February 26th, 2021 12:52 PM

TGIF,

 

It was not a good week for rates; across the board, rates were up. Next week has a handful of scheduled economic releases that may influence mortgage pricing. There is one report that is a bit more important than the others, but most of the data is considered to be of moderate importance to the markets. We also have two Treasury auctions set that have the potential to come into play during afternoon trading midweek. Monday doesn't have anything scheduled that we need to be concerned with. Hopefully, the current selling cycle in bonds will taper off next week, allowing mortgage rates to recover some of this week's losses.*

 

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; 1.50% Down FHA Advantage Program; CHFA Financing; 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, your friends/family/potential buyers/borrowers!


Last Updated: 2/19/21

 

Friday's bond market has opened in negative territory again as the downward momentum continues. Stocks are showing gains for 87 points in the Dow and 71 points in the Nasdaq. The bond market is down 10/32 (1.32%), but we still should see little change in this morning's mortgage rates if comparing to Thursday's early pricing. This is due to strength in bonds late yesterday that led some lenders to improve pricing intraday. Unfortunately, if you did see an improvement before closing yesterday, you likely will see it disappear in this morning's pricing.

 

Today's only relevant economic data was January's Existing Home Sales report at 10:00 AM ET. The National Association of Realtors announced a slight increase in home resales from last month. Analysts were expecting to see a decline in sales, but a downward revision to December's numbers is the difference between an increase and decline. The number of homes sold during the month came in very close to expectations, indicating a flat housing sector that makes the report neutral for mortgage rates.

 

Next week has a handful of scheduled economic releases that may influence mortgage pricing. There is one report that is a bit more important than the others, but most of the data is considered to be of moderate importance to the markets. We also have two Treasury auctions set that have the potential to come into play during afternoon trading midweek. Monday doesn't have anything scheduled that we need to be concerned with. Hopefully, the current selling cycle in bonds will taper off next week, allowing mortgage rates to recover some of this week's losses. 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

 

T. Fanning
Owner - Mortgage Consultant | Home Loan Mortgage
1101 Twin Peaks Cir, Longmont, CO 80503
Cell: 303-931-3239 | Fax: 303-684-0686
t@hlmcolorado.com | http://www.hlmcolorado.com
LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289 


Connect with us:
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Posted by T. Fanning on February 19th, 2021 11:44 AM

Hi, I hope you’re having a good Friday.

 

Rates were mixed this week; conforming loans rates slightly improved; government loan rates slightly deteriorated. Next week has only a couple of relevant economic reports for the markets to digest, in addition to two Treasury auctions that have the potential to influence mortgage rates. The week starts Monday with nothing of importance scheduled that we need to be concerned with. We should see stocks contribute to bond trading and mortgage rate movement a good part of next 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; 1.50% Down FHA Advantage Program; CHFA Financing; 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, your friends/family/potential buyers/borrowers!


Last Updated: 2/12/21

 

Friday's bond market has opened in negative territory even though we got some favorable economic news and stocks are showing minor losses. The Dow is currently down 42 points while the Nasdaq has lost 16 points. The bond market is currently down 10/32 (1.19%), which should push this morning's mortgage rates higher by approximately .125 - .250 of a discount point if comparing to Thursday's early pricing.

 

Today's sole relevant economic report was February's preliminary reading to the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. It came in at 76.2, falling short of the 80.8 that was expected and lower than January's final reading of 79.0. The decline means fewer surveyed consumers felt better about their own financial situations than did last month. Since waning confidence usually translates into softer levels of consumer spending that fuels economic growth, we should consider the data favorable for mortgage rates.

 

The markets will be closed Monday for the President's Day holiday and reopen Tuesday morning. We sometimes see pressure in bonds ahead of these holidays as investors move to protect themselves from potential global events over the long weekend. It should not be a significant issue for rates but looks to be a contributing factor to this morning's early bond weakness.

 

Next week has much more scheduled than this week did. It has another important inflation index (PPI) and the highly influential Retail Sales report along with a few other economic releases. In addition to the data, there is also another Treasury auction set to be held and the release of the minutes from this month's FOMC meeting. The big day of the week will be Wednesday as it has the more important data and a couple of afternoon events.

 

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 by T. Fanning on February 12th, 2021 1:22 PM

Hey,

 

Other than the USDA 30-year fixed loan, rates were down a tick this week. Next week has only a couple of relevant economic reports for the markets to digest, in addition to two Treasury auctions that have the potential to influence mortgage rates. The week starts Monday with nothing of importance scheduled that we need to be concerned with. We should see stocks contribute to bond trading and mortgage rate movement a good part of next 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; 1.50% Down FHA Advantage Program; CHFA Financing; 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, your friends/family/potential buyers/borrowers!

       

Last Updated: 2/5/21

 

Friday's bond market has opened in negative territory following mixed and surprising results from today's major economic report. Stocks are showing relatively minor gains at the moment, pushing the Dow up 69 points and the Nasdaq up 8 points. The bond market is currently down 1/32 (1.13%), which should keep this morning's mortgage rates close to Thursday's early pricing.

 

This morning's sole economic release was January's Employment report at 8:30 AM ET. It revealed that the U.S. unemployment rate fell 0.4% to 6.3% while 49,000 new jobs were added to the economy. The drop in the unemployment rate was very much a surprise to analysts, while the payroll number nearly pegged expectations. Offsetting the lower unemployment rate were sizable downward revisions to December and November's payroll numbers that knocked off 159,000 payrolls from previously announced new jobs over those two months.

 

Other readings in the report that drew attention include average hourly earnings that came in below forecasts (up 0.2% vs 0.3%) and average hours worked per week rose to 35.0, setting a new record high. Overall, the report is a thoroughly mixed bag of results. Bonds were weaker overnight and early this morning before the report was released, then rallied into positive ground before slipping back just below unchanged. Don't be surprised to see further fluctuations in the stock and bond markets throughout the day, possibly leading to an intraday revision to mortgage pricing.

 

Next week has only a couple of relevant economic reports for the markets to digest, in addition to two Treasury auctions that have the potential to influence mortgage rates. The week starts Monday with nothing of importance scheduled that we need to be concerned with. We should see stocks contribute to bond trading and mortgage rate movement a good part of next week. Look for details on all 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.*

*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 by T. Fanning on February 5th, 2021 12:17 PM

Hi, I hope you’re doing well.

 

Rates were up a tiny bit this week, although the increases were minor. Next week has little scheduled compared to this week's calendar. Most of what is set for release is related to the housing sector. The stock and bond markets will be closed Monday for the Martin Luther King Jr holiday and will reopen for regular trading Tuesday morning. Some lenders may be open for business Monday, but they likely will use this afternoon's pricing or not accept new rate locks until Tuesday 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: 1/29/21

 

Friday's bond market has opened in negative territory following stronger than expected economic news and despite early stock losses. The Dow is currently down 234 points while the Nasdaq has lost 86 points. The bond market is currently down 10/32 (1.08%), which in addition to weakness late yesterday should cause an increase of approximately .250 of a discount point in this morning's mortgage rates.  

 

December's Personal Income and Outlays data was this morning's first economic release, coming at 8:30 AM ET. It showed a 0.6% rise in income and a 0.2% decline in spending. Both readings were stronger than expected with the income predicted to rise only 0.1% and spending to have fallen 0.4%. The higher level of income means consumers had more money to spend last month, while the smaller decline in spending indicates they spent more than thought even though it was less than in November. Furthermore, an inflation reading within the data that the Fed relies heavily on rose more than analysts were expecting. Because this data allows for stronger economic growth from consumer spending, we need to consider it bad news for bonds and mortgage rates.  

 

Also early this morning was the 4th Quarter Employment Cost Index (ECI) that revealed a 0.7% jump, exceeding forecasts. This index tracks employer costs for wages and benefits, giving us a sign of wage inflation that can spread to other parts of the economy. Since the increase was larger than expected, raising an inflation concern that makes bonds less appealing to investors, this data should also be considered unfavorable for mortgage rates.  

 

The third release of the morning was the revised January reading to the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. It came in at 79.0, down slightly from December's final reading of 79.2. Forecasts were calling for the same in this month's reading, pointing towards little change in how consumers feel about their own financial situations. This was a small variance and has not had an impact on today's trading or mortgage pricing.  

 

Next week's calendar is much lighter than this week's but includes a couple of highly important economic reports. The week begins and ends with those particularly influential releases. January's ISM manufacturing index will kick off the activities late Monday morning while January's monthly Employment report will end them. In between are also a couple of moderately important reports. 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 by T. Fanning on January 29th, 2021 1:03 PM

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