October 28th, 2022 2:16 PM by T. Fanning
Hello, TGIF,
Rates finally had a good week and ended with a pretty decent decrease. Next week has plenty scheduled that is expected to influence the financial markets and mortgage rates. It starts off light with nothing of importance set for Monday, but the rest of the week brings us the almighty monthly Employment report and ISM manufacturing index along with a few less important releases. However, it will be the Fed in the spotlight as their FOMC meeting adjourns Wednesday afternoon.*
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 Non-QM (stated income, verified assets for self-employed borrowers)! To see a detailed list of programs, visit our website: www.homeloanmortgageco.com/mortgageprograms
As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!
Last Updated: 10/28/22
Friday's bond market has opened in negative territory following mostly unfavorable economic data. Stocks are showing noticeable gains, pushing the Dow up 361 points and the Nasdaq up 69 points. The bond market is currently down 8/32 (3.95%), but a strong rally late yesterday is going to allow this morning's mortgage rates to be approximately .375 - .500 of a discount point lower than Thursday's early pricing. There were widespread intraday improvements made yesterday, so how much of an improvement you will see this morning depends on how large of a revision was made yesterday afternoon.
September's Personal Income and Outlays data was released at 8:30 AM ET this morning. It showed a 0.4% rise in income and a 0.6% increase in spending, both of which exceeded expectations by 0.1% and 0.2% respectively. These are signs that consumers had more money to spend last month and did spend more than thought. Furthermore, the core PCE reading that the Fed relies on as an inflation gauge also came in a bit stronger than predicted. Because these numbers show economic and inflationary strength, the report is bad news for bonds and mortgage rates.
Also early this morning was the release of the 3rd Quarter Employment Cost Index (ECI) that tracks employer costs for salaries and benefits. Rising costs usually translates into higher prices paid by consumers for products and services needed. Since it matched expectations of a 1.2% rise, we can label the report neutral for mortgage pricing.
Closing out this week's calendar was the University of Michigan's revised Index of Consumer Sentiment for October. They announced a reading of 59.9 that was an insignificant increase from the preliminary reading of 59.8 earlier this month. This report is moderately important to rates and the minor upward change is not enough for it to impact today's mortgage rates.
Next week has plenty scheduled that is expected to influence the financial markets and mortgage rates. It starts off light with nothing of importance set for Monday, but the rest of the week brings us the almighty monthly Employment report and ISM manufacturing index along with a few less important releases. However, it will be the Fed in the spotlight as their FOMC meeting adjourns Wednesday afternoon. 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... 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
Company NMLS ID: 479289 | LO NMLS: 208694
CO License: 100008854
FL Company License: MBR4416 | FL License: LO89221
Regulated by the Colorado Division of Real Estate
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.