The Home Loan Mortgage Blog



Happy Valentine's Day! I hope you have a great day and weekend!

Rates were mixed this week. ARM and Jumbo 30-year fixed rates dropped slightly; conventional and government loans (FHA, VA, USDA) had a small increase. Next week has several relevant economic reports that we will be watching in addition to the minutes from the most recent FOMC meeting, but none are considered to be key releases or expected to be a market mover. The financial and mortgage markets will be closed Monday for the President's Day holiday and will reopen for regular trading Tuesday.*

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: 2/14/20

Friday's bond market has opened in positive territory despite mixed economic news. Stocks are relatively calm with the Dow down 8 points and the Nasdaq up 13 points. The bond market is currently up 12/32 (1.57%), but a little weakness again late yesterday will likely keep this morning's mortgage rates nearly unchanged from Thursday's early pricing.

The first of this morning's three relevant economic reports was January's Retail Sales at 8:30 AM ET. The Commerce Department announced a 0.3% rise in retail-level sales, matching expectations. A secondary reading that tracks sales excluding more volatile and costly auto transactions also pegged forecasts. What made this report slightly favorable for bonds and mortgage rates were downward revisions to December's results for both readings, indicating consumers spent less that month than previously thought.

January's Industrial Production data was next, coming at 9:15 AM ET. It showed a 0.3% decline as it was expected to do. The decrease in output at U.S. factories, mines and utilities signals weaker economic activity, but since it came as no surprise it has had little impact on today's trading or mortgage pricing.

Lastly, we got February's preliminary reading to the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. It came in at 100.9, exceeding predictions of 99.3 and up from January's final reading of 99.8. The increase means more surveyed consumers felt better about their own financial and employment situations than did last month. Since this index is considered to be an indicator of future consumer spending trends, the rise is bad news for rates as it points towards stronger levels of consumer spending in the near future. Fortunately, this report is considered to be only moderately important to the markets.

Next week has several relevant economic reports that we will be watching in addition to the minutes from the most recent FOMC meeting, but none are considered to be key releases or expected to be a market mover. The financial and mortgage markets will be closed Monday for the President's Day holiday and will reopen for regular trading Tuesday. Look for details on all of 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 February 14th, 2020 1:01 PM


Hi, I hope you're enjoying the snow!

Rates ticked up a bit this week. Next week has several relevant economic reports scheduled for release, two of which are considered to be very important. There are also a couple of Treasury auctions that may influence mortgage rates. All of the week's events are set for the mid and latter days, leaving stock movement and weekend news to drive bond trading and mortgage pricing the early 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: 2/7/20

Friday's bond market has opened in positive territory despite stronger than expected results from a key economic report. The major stock indexes are in selling mode even though the data appears to be stock-friendly, pushing the Dow lower by 200 points and the Nasdaq down 57 points. The bond market is currently up 18/32 (1.58%), which should improve this morning's mortgage rates by approximately .250 of a discount point.

January's Employment report was today's major release. It revealed that the unemployment rate inched higher by 0.1% to stand at 3.6% last month while 225,000 new jobs were added to the economy. The unemployment rate was expected to hold at 3.5%, meaning the increase is good news for bonds and mortgage pricing. However, this headline number does not draw as much attention as it used to. Most focus these days is on the payroll number and earnings data. The payroll number was much stronger than forecasts, indicating a strong labor market that is generally bad news for mortgage rates.

The earnings portion of the report was a mixed bag of results. January's average earnings rose 0.2%, falling short of the 0.3% that was expected. Weaker earnings numbers ease wage inflation concerns that make bonds less appealing to investors. But the annual rate of earnings growth was a bit stronger than previously thought. This should have been a negative for bonds.

That leaves us to wonder why there is such a positive reaction in the bond market this morning. Bonds did improve a little during overnight trading, but there was a clear move higher shortly after the Employment report was posted. It can't be the earnings data nor the big payroll number. The unemployment rate is favorable, although, it doesn't carry enough importance these days to offset the increase in new jobs. Maybe after the spike in private sector jobs in Wednesday's ADP report traders were expecting stronger numbers in today's release than we actually got? Or could it be related to the coronavirus spreading? Regardless of the reasoning, it is a day of relief for mortgage rates after such a bad week.

Next week has several relevant economic reports scheduled for release, two of which are considered to be very important. There are also a couple of Treasury auctions that may influence mortgage rates. All of the week's events are set for the mid and latter days, leaving stock movement and weekend news to drive bond trading and mortgage pricing the early days. Look for details on the week's complete 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 7th, 2020 1:31 PM


Hi, I hope you enjoy Super Bowl weekend! Watch for the mortgage broker commercial! https://youtu.be/-X4dvNICep4

Another very good week for rates! Next week does not have a large number of economic reports scheduled for release that are expected to affect rates but most of what is set is considered to be extremely important. They start late Monday morning with the release of January's ISM manufacturing index that will give us a key reading of conditions in the manufacturing sector of the economy. The week closes with the almighty monthly Employment report. In between are a couple of moderately important events.*

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: 1/31/20

Friday's bond market has opened well in positive territory with stocks showing heavy losses. The Dow is currently down 268 points while the Nasdaq has lost 33 points. The bond market is currently up 15/32 (1.53%), which should improve this morning's mortgage rates by approximately .125 of a discount point. More importantly, this morning's move pushes the benchmark 10-year Treasury Note yield below an important resistance level of 1.55%. If it stays below that level today, we could see further improvements in mortgage rates in the immediate future. That is assuming that next week's key economic data does not derail the rally.

The first of today's three economic reports was December's Personal Income and Outlays data at 8:30 AM ET. It revealed that personal income rose 0.2% last month while spending rose 0.3%. The rise in spending matched expectations but the income reading fell a bit short of the 0.3% increase that was forecasted. Also worth noting was a downward revision to November's income reading. Because the smaller than predicted rise in income means consumers had less money to spend than many had thought, we can consider the data slightly favorable for bonds and mortgage rates.

Also at 8:30 AM ET was the release of the 4th Quarter Employment Cost Index (ECI) that came in at up 0.7%. The increase indicates employers paid more for wages and benefits during the quarter than the third quarter of last year, but because it pegged forecasts it had little impact on this morning's mortgage pricing.

Lastly, the University of Michigan revised their Index of Consumer Sentiment for January at 10:00 AM ET, announcing a reading of 99.8 that was a little stronger than expectations. The higher reading is a sign that consumers felt better about their own financial situations than analysts had expected. Since stronger consumer confidence levels usually translate into higher levels of consumer spending that fuels economic growth, this was bad news for mortgage rates. Fortunately, its only a moderately important report that didn't have much of an influence on this morning's trading.

Next week does not have a large number of economic reports scheduled for release that are expected to affect rates but most of what is set is considered to be extremely important. They start late Monday morning with the release of January's ISM manufacturing index that will give us a key reading of conditions in the manufacturing sector of the economy. The week closes with the almighty monthly Employment report. In between are a couple of moderately important events. 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 January 31st, 2020 11:38 AM


Hi, I hope you have a great Friday!

It was a good week for rates - lower across the board. Next week is much busier than this week was though. It has something for us to watch every day, starting with a minor housing report Monday morning. The scheduled events range from low importance to highly important. We will get housing, manufacturing and consumer spending data along with the initial GDP reading for the 4th quarter, a couple of Treasury auctions and a FOMC meeting.*

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: 1/24/20

Friday's bond market has opened in positive territory, extending the recent positive momentum. Stocks are relatively flat with the Dow down 11 points and the Nasdaq down 1 point. The bond market is currently up 10/32 (1.70%), which should improve this morning's mortgage rates by another .125 of a discount point.

Today has nothing scheduled that is relevant to mortgage rates. There is no reason to believe that we will see an intraday revision to rates unless the major stock indexes make a big move lower. In other words, don't be surprised to see a fairly quiet end of the week for bonds and mortgage pricing.

Next week is much busier than this week was though. It has something for us to watch every day, starting with a minor housing report Monday morning. The scheduled events range from low importance to highly important. We will get housing, manufacturing and consumer spending data along with the initial GDP reading for the 4th quarter, a couple of Treasury auctions and a FOMC meeting. Look for details on all of 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 January 24th, 2020 9:31 AM


Happy Friday!

Rates pulled back from last week's numbers, ending the week a tad higher. Next week has very little scheduled that is expected to affect mortgage rates. The stock and bond markets will be closed Monday for the Martin Luther King Jr Holiday and will reopen Tuesday for normal trading hours. There is no early close today ahead of the holiday, but don't be surprised to see things get quiet as the end of the day nears because some traders are likely to head home for the long weekend.*

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: 1/17/20

Friday's bond market has opened in negative territory following mixed economic data. Stocks are showing moderate gains with the Dow up 62 points and the Nasdaq up 19 points. The bond market is currently down 11/32 (1.84%), which should push this morning's mortgage rates higher by approximately .125 of a discount point.

December's Housing Starts kicked off today's batch of economic releases at 8:30 AM ET, revealing a surprising 16.9% spike in new home groundbreakings. This was much stronger than expected and pushed starts to their best level in 13 years. The report includes multi and single-family starts though. A large contributor to the overall increase was a 29.8% jump in starts of multi-family homes such as condos and apartment buildings. Still, the 11.2% rise in single-family groundbreakings is a healthy rate that indicates housing sector strength. Fortunately, the number of new permits issued that helps predict future starts came in much weaker than expected. Unfortunately, the headline number on this report is enough to have a negative impact on this morning's bond trading and mortgage pricing even though it is not considered to be highly important.

Today's good news came in December's Industrial Production report at 9:15 AM ET. It showed a 0.3% decline in output at U.S. factories, mines and utilities, meaning the decline is a sign of manufacturing sector weakness. Forecasts were calling for a 0.1% increase in production. Since this is a sign of economic weakness, we can consider this report good news for bonds and mortgage rates.

The final report of the week was the preliminary reading to the University of Michigan's Index of Consumer Sentiment for January. They announced a reading of 99.1 late this morning, down slightly from December's final reading of 99.3. However, analysts were expecting to see a larger decline in the index. But this was not enough of a variance to cause much concern in the markets and has had little impact on this morning's mortgage pricing.

Next week has very little scheduled that is expected to affect mortgage rates. The stock and bond markets will be closed Monday for the Martin Luther King Jr Holiday and will reopen Tuesday for normal trading hours. There is no early close today ahead of the holiday, but don't be surprised to see things get quiet as the end of the day nears because some traders are likely to head home for the long weekend. Look for details on what is scheduled next week 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 January 17th, 2020 10:32 AM

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