November 22nd, 2024 5:31 PM by T. Fanning
I hope you have a fantastic weekend!
In recent weeks, the bond market has had to settle for small wins. As November comes to a close, the best outcome we could have hoped for was avoiding further losses. This week has been successful in that sense; rates stayed stable with a slight dip.
Next week features key economic events despite the Thanksgiving break, including the Fed's inflation readings, Treasury auctions, and FOMC minutes—packed into just two days! Markets close Thursday, with no events Monday or Friday.
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: 11/22/24
Friday's bond market has opened in positive territory again following favorable economic data. Stocks are mixed with the Dow up 255 points and the Nasdaq down 12 points. The bond market is currently up 5/32 (4.40%), but a bit of weakness late yesterday is going to keep this morning's mortgage rates close to Thursday's early pricing. If you saw an intraday increase yesterday afternoon, you should see an improvement in this morning's pricing of about the same size.
Today's sole relevant economic news came from the University of Michigan, who said their revised November Index of Consumer Sentiment stood at 71.8. This was lower than the initial estimate of 73.0, indicating surveyed consumers did not feel as confident about their own financial situations as previously thought. We can consider the lower reading good news for bonds and mortgage rates because waning confidence usually translates into softer consumer spending numbers. That category makes up over two-thirds of the U.S. economy, so weaker consumer spending often limits overall economic growth and helps to make bonds more attractive to investors.
Next week is shortened by the Thanksgiving Day holiday yet still has a large number of scheduled events that we will be watching. There are a handful of relevant economic releases, including two that are considered to be highly important. One of those is the Fed's preferred inflation readings. In addition to the data, there are also a couple of Treasury auctions and the release of the minutes from this month's FOMC meeting. All of those activities come over just two days with nothing scheduled Monday or Friday and the markets closed for Thursday's holiday. 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... Float 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
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.