The Home Loan Mortgage Blog

Weekly Update - 12/8/17

December 8th, 2017 2:34 PM by T. Fanning



TGIF! 

Other than the 30-Year Fixed Jumbo loan, rates experienced a very minor decrease. Next week brings us the release of several important economic releases in addition to the last FOMC meeting of the year, which will also include revised economic projections and a press conference with Chair Janet Yellen. There is relevant data being posted every day except Monday.*

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; 1% Down Conventional Program; CHFA Financing; HomeStyle renovation program; and a jumbo, 5% 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: 12/8/17

Friday's bond market has opened down slightly following mixed results in today's major economic release. Stocks are in positive ground, pushing the Dow up 31 points while the Nasdaq has gained 47 points. The bond market is currently down 2/32 (2.37%), which with yesterday's afternoon weakness should cause this morning's mortgage rates to be slightly higher than Thursday's morning pricing.

November's Employment report was posted at 8:30 AM ET this morning. It gave us several important readings on the employment sector, showing that the unemployment rate remained at 4.1% last month and that 228,000 new jobs were added to the economy. The unemployment rate matched forecasts but the payroll number was higher than expected (190k). There were also some revisions to October and September's numbers, but the net difference over the two months was only 3,000 jobs and not relevant today. Still, this news only helped support the consensus that the Fed is going to raise key short-term interest rates next week.

The good part of the report was average earnings data. Analysts were expecting to see a 0.3% rise in earnings while today's report revealed only a 0.2% increase. More good news came in a 0.1% downward revision to October's earnings reading. The weaker than predicted earnings data eases inflation concerns that erode investor value in bonds. This news is preventing a negative reaction in the bond and mortgage markets.

Also released this morning was December's preliminary reading to the University of Michigan's Index of Consumer Sentiment. The 10:00 AM ET release showed a 96.8 reading that fell short of last month's 98.5. That means that surveyed consumers were less optimistic about their own financial situations than thought. Forecasts were calling for a slight increase in sentiment. Because waning confidence usually translates into weaker levels of consumer spending, this reading was good news for bonds and mortgage rates.

Next week brings us the release of several important economic releases in addition to the last FOMC meeting of the year, which will also include revised economic projections and a press conference with Chair Janet Yellen. There is relevant data being posted every day except Monday. Look for details on next week's events 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.*

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




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Posted in:General
Posted by T. Fanning on December 8th, 2017 2:34 PM

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