The Home Loan Mortgage Blog

Weekly Update - 10/11/19

October 11th, 2019 2:56 PM by T. Fanning



Hey!

Rates pulled back from last weeks low, ending the week higher. Next week brings us a handful of economic reports, but only one is considered to be of major importance and it comes midweek. The bond market will be closed Monday for the Columbus Day holiday while stocks will be open for trading.*

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: 10/11/19

Friday's bond market has opened in negative territory due mostly to trade and Brexit related news. Stocks are reacting favorably to the same news, pushing the Dow higher by 390 points and the Nasdaq up 135 points. The bond market is currently down 23/32 (1.74%), which with weakness late yesterday should push this morning's mortgage rates higher by approximately .250 of a discount point if comparing to Thursday's early pricing.

Today's only relevant economic data did not help matters. The University of Michigan's Index of Consumer Sentiment for October came in at 96.0, up from September's 93.2 and higher than forecasts. The rise means surveyed consumers felt better about their financial and employment situations this month than last month. Because higher levels of confidence usually translates into stronger consumer spending that fuels economic growth, this was bad news for bonds and mortgage rates. However, the bond market was well in negative ground before this data was posted at 10:00 AM ET.

This morning's bond selling is being attributed mostly to news of a possible deal with Britain and the European Union (Brexit) and comments by President Trump last night that a partial trade deal with China is near. Both of these events, if accurate, are believed to be economically friendly. That makes them bad news for bonds and good news for stocks. Hence the strong open in stocks and the early losses in bonds. President Trump is meeting with China's trade negotiator this afternoon, so expect more news to come on this later today.

Next week brings us a handful of economic reports, but only one is considered to be of major importance and it comes midweek. The bond market will be closed Monday for the Columbus Day holiday while stocks will be open for trading. Look for details on next week's calendar in Sunday evenings 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 October 11th, 2019 2:56 PM

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