The Home Loan Mortgage Blog



Hi,

Rates were up a smidgen this week, but still near all-time lows! 
Next week has a fairly large number of economic reports and other events scheduled that may influence mortgage rates. Some of the data is of less importance than others but there is at least one item scheduled each day, including Tuesday when the markets reopen.*

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: 5/22/20

Friday's bond market has opened in positive territory with stocks reacting to concerns about the U.S.-China relationship. The major stock indexes are looking to close out the week on a negative note, pushing the Dow down 150 points and the Nasdaq down 13 points. The bond market is currently up 8/32 (0.65%), but a little weakness in mortgage bonds late yesterday should keep this morning's mortgage rates very close to Thursday's early pricing.

There is nothing of relevance scheduled for release today. If we see a noticeable move in bond yields or an intraday revision to mortgage rates it will likely be a result of a move in stocks. Generally speaking, stock strength hurts bond prices, pushing yields and mortgage rates higher. On the other hand, if the major stock indexes extend this morning's losses, we could see a slight improvement in rates before today's early close in bonds.

The bond market will close at 2:00 PM today while stocks are set to trade a full session. All the U.S. markets will be closed Monday for the Memorial Day holiday and will reopen for regular trading Tuesday morning. It is common to see a little pressure in bonds and mortgage related securities ahead of a long holiday weekend such as this one. That is usually caused by traders selling some holdings ahead of the holiday to protect themselves from events over the extended break.

Next week has a fairly large number of economic reports and other events scheduled that may influence mortgage rates. Some of the data is of less importance than others but there is at least one item scheduled each day, including Tuesday when the markets reopen. Look for details on the 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 May 22nd, 2020 12:38 PM


Happy...safer at home,

Conventional rates are now at ALL-TIME lows! 
Next week has only a couple of economic reports for the markets to digest. Most of which is related to the housing sector. However, it will also bring us the minutes from the most recent FOMC meeting and congressional testimony from Fed Chairman Powell. Monday has nothing of importance scheduled that we need to be concerned with.*

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: 5/15/20

Friday's bond market has opened in negative territory following mixed economic news. The major stock indexes are showing losses of 101 points in the Dow and 46 points in the Nasdaq. The bond market is currently down 4/32 (0.62%), which should keep this morning's mortgage rates close to Thursday's early pricing.

This morning's big economic news was the release of April's Retail Sales data at 8:30 AM ET. It showed that consumer level spending fell a whopping 16.4% last month, weaker than forecasts of an 11.5% decline. This was the largest monthly drop on record following March's revised 8.3% decline and shows that the pandemic impact on the economy is worse than many had thought. Even a secondary reading that excludes more volatile and costly auto sales plunged 17.2% when it was expected to fall 8.6%. Because consumer spending makes up over two-thirds of the U.S. economy and they show weak activity, these results are clearly good news for mortgage rates.

April's Industrial Production report was posted at 9:15 AM ET, revealing an 11.2% decline in output at U.S. factories, mines and utilities. While the sizable decline indicates weakness in the manufacturing sector, the size of it was close to forecasts. Therefore, we have not seen much of a reaction to the data this morning.

May's preliminary reading of the University of Michigan's Index of Consumer Sentiment was also released this morning. It came in at 73.7, up from April's 71.8 when it was expected to fall to 67.0. The increase means that surveyed consumers were much more optimistic about their own financial situations this month than last month, contradicting forecasts. It was surprising to see an increase in sentiment considering the current employment situation. Still, the higher reading is bad news for bonds and mortgage rates because rising confidence means consumers are more likely to spend in the near future, fueling economic activity.

Next week has only a couple of economic reports for the markets to digest. Most of which is related to the housing sector. However, it will also bring us the minutes from the most recent FOMC meeting and congressional testimony from Fed Chairman Powell. Monday has nothing of importance scheduled that we need to be concerned with. Look for details on all of next week's activities in the 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 May 15th, 2020 3:19 PM


Happy Quarantine,

Rates pulled back this week, ending up a bit higher. 
Next week brings us a handful of relevant economic releases in addition to a couple of Treasury auctions that have been known to influence rates. The first two releases of the week are normally important inflation readings (PPI and CPI), but the markets aren't too concerned about inflation at the moment. What will likely draw plenty of interest is the Retail Sales report late next week that tracks consumer spending. Monday has nothing of importance scheduled for release. *

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: 5/8/20

Friday's bond market has opened in negative territory following mixed results in today's major economic release. Stocks are showing early strength, extending overnight gains to push the Dow higher by 330 points while the Nasdaq is up 100 points. The bond market is currently down 8/32 (0.66%), but strength late yesterday should improve this morning's mortgage rates slightly.

Today's big economic news was April's Employment report at 8:30 AM ET. It showed that 20.5 million jobs were lost last month, pushing the unemployment rate up to 14.7%. The number of lost jobs was the single worst month on record but was not as bad as some analysts were expecting to see. Today's report also showed that March's decline in jobs was revised from 701,000 to down 870,000, meaning that month was worse than previously thought.

The unemployment rate was the worst since the Great Depression era in the 1930's, even exceeding the highest rate during the financial meltdown of 2008-2009. Making matters more interesting is a note within the report that indicates surveyed households likely did not accurately report their employment status due to confusion about being temporarily at home and that if they had done so, the unemployment rate would likely have been 5% higher than the announced rate.

Overall, this morning's report paints a grim situation in the employment sector. Since the report compiles data from the week the 12th falls in each month, which is next week for May's report, it is likely to be ugly also even though states are starting to partially reopen for business. While the numbers are a bit shocking, they didn't come as a complete surprise to the markets. Since bad news was built in already, we are not seeing a significant reaction in this morning's early trading. Stocks were showing gains long before the report was posted this morning.

Next week brings us a handful of relevant economic releases in addition to a couple of Treasury auctions that have been known to influence rates. The first two releases of the week are normally important inflation readings (PPI and CPI), but the markets aren't too concerned about inflation at the moment. What will likely draw plenty of interest is the Retail Sales report late next week that tracks consumer spending. Monday has nothing of importance scheduled for release. 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 May 8th, 2020 1:04 PM


Happy Friday,

Lenders continue to tighten guidelines; the new target - cash-out refinances. These specific refinances are getting more expensive, as lenders are pricing the increasing risk into the interest rates.

Another good week for non cash-out refinances; rates are down across the board. 
Next week does not have a lot scheduled but most of what is on the calendar is considered highly relevant to the financial and mortgage markets. Monday does have something moderately important set for release with March's Factory Orders data. The big news will come at the end of the week when April's Employment report is released.*

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: 5/1/20

Friday's bond market has opened in positive territory following news that President Trump is considering trade action against China for their early handling of the coronavirus. Possibly resurrecting a trade war is also causing weakness in stocks. The Dow is currently down 456 points while the Nasdaq has lost 169 points. The bond market is currently up 4/32 (0.63%), which should keep this morning's mortgage rates close to Thursday's early pricing.

This morning's sole relevant economic report was April's manufacturing index from the Institute for Supply Management (ISM) at 10:00 AM ET. They announced a reading of 41.5 that was down from March's 49.1 but higher than the 39.0 that was expected. The reading indicates more surveyed manufacturing executives felt business worsened in the month than did in March. Since that is considered to be a sign of significant weakness in the sector, we can put a favorable label on the news. However, limiting its influence this morning is the fact that it came in a little higher than expected.

Next week does not have a lot scheduled but most of what is on the calendar is considered highly relevant to the financial and mortgage markets. Monday does have something moderately important set for release with March's Factory Orders data. The big news will come at the end of the week when April's Employment report is released. 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 May 1st, 2020 12:46 PM


Hi, I hope had a good week!

Good week for rates - all down from last Friday's numbers. 
Next week has plenty scheduled that has the potential to affect mortgage rates. There are a large number of economic reports set for release, including two extremely important ones. One of those two is the initial reading of the 1st Quarter Gross Domestic Product (GDP) that is considered to be the benchmark reading of economic growth or contraction. In additional to the data, there are also a couple of moderately important Treasury auctions as the new week starts and another FOMC meeting mid-week. Monday does not have any economic releases scheduled that we need to watch but does have the 5-year Treasury Note auction that will be an afternoon event.*

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: 4/24/20

Friday's bond market has opened in negative territory following some disappointing economic data. Stocks are mixed but fairly calm with the Dow up 24 points and the Nasdaq down 10 points. The bond market is currently down 4/32 (0.61%), which should keep this morning's mortgage rates close to Thursday's early pricing.

March's Durable Goods Orders was the first of this morning's two economic releases. It revealed a decline of 14.4% in new orders for big-ticket products such as airplanes, appliances and electronics. This was a larger decline than many analysts had expected and is a reflection of the impact the coronavirus is having on the economy. However, a secondary reading within the report that tracks new orders excluding more volatile and costly transportation products fell a surprising 0.2% when it was expected to fall 4.0%. That forces us to consider the data neutral for mortgage rates instead of clearly favorable.

The University of Michigan's revised Index of Consumer Sentiment for April was also released this morning, coming in at 71.8. This was an increase from the previous estimate two weeks ago and above forecasts of 67.0. The increase means that surveyed consumers felt better about their own financial situations than analysts had thought and therefore, are likely to spend more than the models predicted. That makes the data negative for bonds and mortgage rates because higher levels of consumer spending translate into stronger economic growth.

Next week has plenty scheduled that has the potential to affect mortgage rates. There are a large number of economic reports set for release, including two extremely important ones. One of those two is the initial reading of the 1st Quarter Gross Domestic Product (GDP) that is considered to be the benchmark reading of economic growth or contraction. In additional to the data, there are also a couple of moderately important Treasury auctions as the new week starts and another FOMC meeting mid-week. Monday does not have any economic releases scheduled that we need to watch but does have the 5-year Treasury Note auction that will be an afternoon event. 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 April 24th, 2020 1:11 PM

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