January 24th, 2025 3:08 PM by T. Fanning
Hey there! I hope your week has been fantastic!
This week, mortgage rates have been dull due to a lack of significant economic data. However, next week's busy schedule promises more activity. Rates are unlikely to improve significantly unless there's clear evidence of slowing growth and progress on inflation.
Next week, the markets will be busy. It starts with a New Home Sales report on Monday, followed by the first FOMC meeting of the year, the initial 4th-quarter GDP reading, and the Fed's preferred inflation gauge. Additionally, there will be some important reports and Treasury auctions. Expect more significant market and mortgage rate movements than this week.
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); Conventional 0% down; Conventional, 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 can also do non-traditional programs! To see a detailed list of programs, visit our website: www.homeloanmortgageco.com/mortgageprograms
Last Updated: 1/24/25
Friday's bond market has opened flat following contradicting results in today's moderately important economic data. Stocks are mixed with the Dow down 145 points and the Nasdaq up 10 points. The bond market is currently unchanged from Thursday's close (4.64%), which should keep this morning's mortgage rates close to yesterday's early pricing.
The National Association of Realtors announced late this morning that home resales rose 2.2% last month, indicating modest growth in the housing sector. That was a little stronger than what analysts were expecting to see and the best month for sales since February of last year. However, last year was the worst in sales in almost 30 years. Market traders are more focused on recent data, causing us to label the report slightly negative for bonds and mortgage rates.
Also posted late this morning was January's Index of Consumer Sentiment from the University of Michigan. It came in at a lower than predicted 71.1. This was a decline from the previous reading of 74.0, meaning surveyed consumers were not as optimistic about their own financial situations as previously thought. Since waning confidence often translates into weaker consumer spending, the decline was good news for bonds and mortgage pricing.
Next week has plenty scheduled for the markets to digest. It starts light with just a lower-tier New Home Sales report Monday morning, but the rest of the week includes the first FOMC meeting of the year, the initial GDP reading for the 4th quarter and the Fed's preferred inflation gauge. In addition to those events, there are a few moderately important reports and a couple of Treasury auctions. We can expect to see much stronger moves in the markets and mortgage rates than we did this week. Look for details on all of the scheduled 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... Lock 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.
*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
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