The Home Loan Mortgage Blog

Weekly Update - 3/20/20

March 20th, 2020 11:19 AM by T. Fanning



Hello all - please continue to stay safe!

Volatile is the best word to describe the stock market and mortgage rates. This week's numbers ended up a little higher from last Friday's numbers.
 Next week has a handful of economic releases that are normally relevant to mortgage rates in addition to a couple of potentially influential Treasury auctions. One or two of the reports stand out as more important than the others, but because they still cover February, they likely will not be of much interest to the markets. There is no reason to believe that the crazy volatility we have seen this week will cease next week. It is highly likely that the markets won't be interested in economic data until it starts to cover the months of March and April.*

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: 3/20/20

Friday's bond market has opened well in positive territory again but will be of no help to mortgage rates. The major stock indexes are in positive territory at the moment, with the Dow up 58 points and the Nasdaq up 64 points. The bond market is currently up 42/32 (1.02%), but mortgage bonds are having an ugly morning. Despite the strong gains in Treasuries and modest improvement in stocks (considering the recent volatility), we still will see a sizable increase in this morning's mortgage rates. Mortgage bonds and Treasuries have not reconnected yet, bucking the traditional trend of moving in the same direction.

The National Association of Realtors announced late this morning that home resales rose 6.5% last month, exceeding forecasts. That is a sign that the housing sector was stronger than many had thought, making the data unfavorable for bonds and mortgage rates. However, the data is not important enough to draw much attention during this chaotic environment in the markets and had no impact on today's rates.

Next week has a handful of economic releases that are normally relevant to mortgage rates in addition to a couple of potentially influential Treasury auctions. One or two of the reports stand out as more important than the others, but because they still cover February, they likely will not be of much interest to the markets. There is no reason to believe that the crazy volatility we have seen this week will cease next week. It is highly likely that the markets won't be interested in economic data until it starts to cover the months of March and April.

Look for details on next week's calendar and this weekend's relevant 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...
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.*

*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 March 20th, 2020 11:19 AM

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