The Home Loan Mortgage Blog

Weekly Update - 2/14/20

February 14th, 2020 1:01 PM by T. Fanning



Happy Valentine's Day! I hope you have a great day and weekend!

Rates were mixed this week. ARM and Jumbo 30-year fixed rates dropped slightly; conventional and government loans (FHA, VA, USDA) had a small increase. Next week has several relevant economic reports that we will be watching in addition to the minutes from the most recent FOMC meeting, but none are considered to be key releases or expected to be a market mover. The financial and mortgage markets will be closed Monday for the President's Day holiday and will reopen for regular trading Tuesday.*

We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans; FHA and VA 1x Close Construction-Perm; 1% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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: 2/14/20

Friday's bond market has opened in positive territory despite mixed economic news. Stocks are relatively calm with the Dow down 8 points and the Nasdaq up 13 points. The bond market is currently up 12/32 (1.57%), but a little weakness again late yesterday will likely keep this morning's mortgage rates nearly unchanged from Thursday's early pricing.

The first of this morning's three relevant economic reports was January's Retail Sales at 8:30 AM ET. The Commerce Department announced a 0.3% rise in retail-level sales, matching expectations. A secondary reading that tracks sales excluding more volatile and costly auto transactions also pegged forecasts. What made this report slightly favorable for bonds and mortgage rates were downward revisions to December's results for both readings, indicating consumers spent less that month than previously thought.

January's Industrial Production data was next, coming at 9:15 AM ET. It showed a 0.3% decline as it was expected to do. The decrease in output at U.S. factories, mines and utilities signals weaker economic activity, but since it came as no surprise it has had little impact on today's trading or mortgage pricing.

Lastly, we got February's preliminary reading to the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. It came in at 100.9, exceeding predictions of 99.3 and up from January's final reading of 99.8. The increase means more surveyed consumers felt better about their own financial and employment situations than did last month. Since this index is considered to be an indicator of future consumer spending trends, the rise is bad news for rates as it points towards stronger levels of consumer spending in the near future. Fortunately, this report is considered to be only moderately important to the markets.

Next week has several relevant economic reports that we will be watching in addition to the minutes from the most recent FOMC meeting, but none are considered to be key releases or expected to be a market mover. The financial and mortgage markets will be closed Monday for the President's Day holiday and will reopen for regular trading Tuesday. Look for details on all of next week's calendar 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
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on February 14th, 2020 1:01 PM

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