February 3rd, 2023 1:24 PM by T. Fanning
Hello, I hope you’ve had a great week.
Earlier this week, the Feds increased their benchmark rates by another .25%. Mortgage rates initially dropped on the news, but have since given back most of that decrease today. Overall, rates ended mixed with minor changes from last Friday’s numbers. Next week has little scheduled that is expected to influence mortgage rates. The calendar only shows two Treasury auctions midweek and a consumer confidence related index late in the week. Now that the FOMC meeting is behind us, we will start seeing more Fed member speaking engagements that could affect the markets, especially on days that lack economic releases.*
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); 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: 2/3/23
Friday's bond market has opened well in negative territory following surprisingly strong economic news. Stocks are showing losses even though the data indicates stronger economic activity, pushing the Dow lower by 171 points and the Nasdaq down 142 points. The bond market is currently down 39/32 (3.55%), which should cause this morning's mortgage rates to be approximately .500 - .625 of a discount point higher than Thursday's early pricing.
Today's major economic release was January's Employment report that showed the U.S. unemployment rate fell 0.1% to 3.4% last month when it was widely expected to move a bit higher. The eye-popping number was the 517,000 new payrolls, greatly exceeding forecasts of 190,000. These headlines are leaving many analysts and traders scratching their heads trying to figure out how this is possible after the Fed raised key short-term interest rates seven times last year, most of which are considered to be sizable moves. What this report also does is give the Fed the greenlight to keep raising rates since their previous actions apparently aren't hurting the labor market. It is this point that is likely the source of this morning's stock losses.
The earnings data in the report showed a 0.3% rise, matching expectations. The bond market has been very sensitive to this reading since inflation became an issue. The lack of a surprise in this reading is causing bonds to trade on the other two headlines from the report, hence the upward move in rates today.
Next week has little scheduled that is expected to influence mortgage rates. The calendar only shows two Treasury auctions midweek and a consumer confidence related index late in the week. Now that the FOMC meeting is behind us, we will start seeing more Fed member speaking engagements that could affect the markets, especially on days that lack economic releases. 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... Lock if my closing were taking place between 8 and 20 days... Lock 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.