The Home Loan Mortgage Blog

Hi, I hope you’ve had a great week!

Today’s job report showed only 12,000 jobs added, coming in way below the forecasted number of 113,000. Although the 12,000 result was a surprise, the market focused on the employment rate, which came in right in line with expectations. For the week, interest rates continued their upward trend. 

Next week features important economic updates and the Fed's FOMC meeting on Thursday, expected to reduce interest rates as inflation nears 2.0%. It all begins late Monday with September's Factory Orders report.

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

As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!

Last Updated: 11/1/24

Friday's bond market has surprisingly opened relatively flat, especially considering the significance of this morning's data. Stocks are rallying with the Dow up 444 points and the Nasdaq up 231 points. The bond market is currently down 1/32 (4.29%), but strength late yesterday should allow this morning's mortgage rates to be approximately .125 of a discount point lower than Thursday's early pricing.

Today's big news was the release of two major economic reports. October's Employment report at 8:30 AM ET showed the employment sector added far fewer jobs to the economy than was expected. Only 12,000 payrolls were added when forecasts were in the neighborhood of 115,000. The unemployment rate held at September's 4.1%, as was expected. The bad news came in the 0.4% rise in average earnings that raises wage inflation concerns. Analysts were expecting to see a 0.3% increase. Earnings were up 4.0% on an annual basis to match predictions.

The Institute for Supply Management (ISM) announced their October manufacturing index stood at 46.5 last month. This was a bit lower than September's 47.2 and lower than forecasts of 47.6. The lower reading indicates manufacturers said business conditions were a little weaker last month than they were in September. As a sign of slower economic activity, this report was favorable news for bonds and mortgage rates.

Next week has a handful of moderately important economic reports scheduled for release, in addition to a couple of Treasury auctions that may impact rates during afternoon and the presidential election results. However, the big event of the week for rates will be the Fed's seventh and second to last FOMC meeting of the year. This meeting will adjourn Thursday instead of the typical Wednesday afternoon. It is widely expected to bring another reduction to key short-term interest rates as inflation seems to be trending towards the Fed's goal of 2.0% annually. The week's activities begin late Monday morning when September's Factory Orders report is posted, but 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...
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.

*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
                                                  

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