March 3rd, 2023 1:45 PM by T. Fanning
Hi, I hope you’ve had a good week.
Rates were mixed this week with small movements. Next week is packed full of economic releases and other events that are likely to affect mortgage rates. It starts with the moderately important Factory Orders report Monday morning and closes with the almighty monthly Employment report Friday. In between there is other economic data and two days of congressional testimony by Fed Chairman Powell.*
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: 3/3/23
Friday's bond market has opened in positive territory, extending overseas gains during overnight trading. Stocks are showing moderate gains, pushing the Dow up 37 points and the Nasdaq up 94 points. The bond market is currently up 17/32 (3.99%), which should improve this morning's mortgage rates by approximately .125 - .250 of a discount point.
It is not a surprise that we are seeing bonds open in positive ground. The benchmark 10-year Treasury Note yield broke above 4.00% yesterday for the first time since early November. That threshold seems to have a psychological impact on trading and analysts, where yields that high will have a strong negative impact on the economy by making corporate borrowing more expensive. Furthermore, for those investors that fear a recession is still coming, where stocks would tank, the guaranteed interest rate of Treasuries becomes more appealing. The result is a shift of funds into bonds, leading to lower yields and mortgage pricing.
We have a few Fed member speaking engagements set throughout the day that may cause a reaction in bonds. They will be watched closely for any hint of what the Fed's future plans may be regarding monetary policy and may lead to a revision in rates anytime between 11:00 AM ET and closing.
Next week is packed full of economic releases and other events that are likely to affect mortgage rates. It starts with the moderately important Factory Orders report Monday morning and closes with the almighty monthly Employment report Friday. In between there is other economic data and two days of congressional testimony by Fed Chairman Powell. 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... 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
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.