December 27th, 2024 4:58 PM by T. Fanning
I hope you had a great Christmas and Holiday! Have a good and safe New Years!
Mortgage rates edged up slightly this week, as market activity remained subdued during the holiday period. Looking back, 30-year fixed rates topped 7% in September 2022, dipped below 6%, rose above 8%, and settled near 7% by late 2023. While 2024 showed some early promise, it ended much like 2023—flat. Whether 2025 will be different depends on the economy and inflation. Rates won’t drop significantly until inflation stays at or below 2%, and the U.S. reduces its heavy Treasury issuance, which keeps rates high.
Next week will be shorter because of the New Year's Day holiday, with only a few economic updates. The main report, the ISM manufacturing index, comes out Friday morning. The ADP and government jobs reports are set for the following week, so there’s not much next week that could affect mortgage rates.
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: 12/27/24
Friday's bond market has opened relatively flat with little to drive trading this morning other than heavy stock selling. The major stock indexes are showing sizable losses during early trading, pushing the Dow lower by 350 points and the Nasdaq down 431 points. The bond market is currently down 1/32 (4.58%), but solid gains late yesterday are going to allow an improvement in this morning's mortgage rates of approximately .250 of a discount point. If you saw an intraday downward revision late yesterday, you may see little or no change this morning.
Yesterday's 7-year Treasury Note auction went very well in terms of demand for the securities. The benchmarks pointed to a high demand from investors. The overly strong auction fueled a nice rebound in bonds after results were announced at 1:00 PM. There was enough of a move in bonds that a good number of lenders revised rates lower before closing.
There is nothing of importance scheduled for release today. We should see a fairly calm day for rates even if there is some movement in bonds. Many bond firms are working with a short staff today, causing thin trading volume. That scenario often translates into stronger moves than we would normally see on a traditional trading day. If some weakness appears in bonds today, it isn't necessarily a concern in the longer-term outlook for rates.
Next week will also be shortened, this time due to the New Year's Day holiday. We will get just one of the usual new month batch of economic reports and it doesn't come until Friday morning (ISM manufacturing index). The ADP and governmental Employment reports will be released the following week. There is actually very little scheduled next week that is expected to influence mortgage rates other than the ISM report. Look for details on all of next week's schedule 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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