November 10th, 2023 12:22 PM by T. Fanning
Hello and happy Friday, I hope you’ve had a great week.
Rates gave back some of last week’s decrease, ending the week a bit higher. Next week has several highly important economic releases, including two monthly inflation indexes and a key report on consumer spending. In addition to those with elevated significance, there are also a couple of moderately important releases later in the week. We will get the more influential releases first next week, followed by the less relevant releases during the latter days. There is nothing scheduled for Monday, meaning we can expect weekend news to drive trading as the week begins.*
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); 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: 11/10/23
Friday's bond market has opened in positive territory, recovering part of yesterday's afternoon losses. The major stock indexes are showing moderate gains of 65 points in the Dow and 63 points in the Nasdaq. The bond market is currently up 9/32 (4.59%), but heavy selling late yesterday caused many lenders to revise pricing higher. We can expect to see an increase of approximately .250 - .375 of a discount point if compared to Thursday's early pricing.
Yesterday's 30-year Treasury Bond auction went poorly with the benchmarks showing a low level of interest in the securities. The results announcement at 1:00 PM ET directly coincided with the start of a sell-off in bonds that led to widespread upward revisions to mortgage pricing. Many lenders made more than one adjustment or made a sizable change towards the end of the trading day as the selling snowballed into closing. The lack of investor demand is an issue for mortgage rates because it signals long-term securities are losing their appeal and mortgage rates are set by long-term mortgage bonds.
Also worthy of mentioning was Fed Chairman Powell's speaking engagement yesterday afternoon. He didn't give us a major surprise but did reiterate that the economy is currently resilient to the rate hikes the Fed has made to control inflation and said they wouldn't hesitate to make more if needed. His comments fueled speculation that the one remaining rate hike expected may not actually be the last of them. This was the second whammy to the bond market late yesterday, heavily contributing to the bond sell-off.
Today's only relevant economic data was November's preliminary Index of Consumer Sentiment for November. The University of Michigan announced a reading of 60.4 that was well short of the 63.6 that was expected and October's 63.8. The decline means surveyed consumers felt worse about their own financial situations than they did last month. Since waning confidence usually translates into a hesitancy to spend, we can consider the report to be good news for bonds and mortgage rates.
Next week has several highly important economic releases, including two monthly inflation indexes and a key report on consumer spending. In addition to those with elevated significance, there are also a couple of moderately important releases later in the week. We will get the more influential releases first next week, followed by the less relevant releases during the latter days. There is nothing scheduled for Monday, meaning we can expect weekend news to drive trading as the week begins. 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... Lock 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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