The Home Loan Mortgage Blog

Weekly Update - 12/16/16

December 16th, 2016 6:30 PM by T. Fanning



Happy Friday - I hope you have a good weekend!

It was not a good week for rates.  Across the board, we saw an increase from last Friday's numbers. 
Next week had a handful of economic reports scheduled to be released but only one of this is thought of as important. They all come during the middle and latter days, so we can expect to see the busiest days as the week progresses. Fed Chair Janet Yellen does have a speaking engagement in Baltimore Monday afternoon and the markets always listen closely when Fed members are speaking. This means we have some to watch for although it is not too concerning.*

We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: a Conventional, FHA and VA 1x Close Construction-Perm; SAPPHIRE grant program; HomeStyle renovation program; and a jumbo, 15% 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: 12/16/16

Friday's bond market has opened in positive territory with today's only relevant data showing favorable results. Stocks are helping bonds by showing only minor gains of 46 points in the Dow and 5 points in the Nasdaq. The bond market is currently up 5/32 (2.58%), but due to weakness late yesterday we still should see an increase in this morning's mortgage rates of approximately .125 of a discount point if comparing to yesterday's morning pricing.

Today's only semi-relevant economic data was November's Housing Starts at 8:30 AM ET. It revealed an 18.7% decline in new home groundbreakings, indicating weakness in the new home portion of the housing sector. This was a much larger decline than was expected and a sizable drop from October's starts, making the data good news for bonds and mortgage rates.

Next week had a handful of economic reports scheduled to be released but only one of this is thought of as important. They all come during the middle and latter days, so we can expect to see the busiest days as the week progresses. Fed Chair Janet Yellen does have a speaking engagement in Baltimore Monday afternoon and the markets always listen closely when Fed members are speaking. This means we have some to watch for although it is not too concerning.

It has been a wild week for mortgage rates, one that I think we are happy is coming to an end. It is nice to close on a positive note (assuming this morning's gains hold), but I think this may be where the bond market regroups. The recent spike in bond yields and mortgage rates has been a bit of an overkill in my opinion. We still need to watch for year-end positioning as traders book profits or losses from this year's volatility. Still, this may be a good opportunity to recover a small part of the post-election increases in mortgage pricing. However, the window may be short-lived so proceed cautiously and keep an eye on the markets if floating an interest rate and closing soo n.

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.*

*http://www.hlmcolorado.com/DailyRateAdvisory




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Posted in:General
Posted by T. Fanning on December 16th, 2016 6:30 PM

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