May 16th, 2025 2:57 PM by T. Fanning
Hi, I hope you have a great weekend!
This week, Barclays said a U.S. recession is unlikely and expects small growth. Still, inflation worries grew, and consumer confidence dropped. The Fed kept rates steady, and markets stayed calm. For the week, rates were mixed with minimal changes.
Next week has a lighter schedule for economic data, with only three reports due—two on housing and one on April's Leading Economic Indicators, out Monday morning. A midweek Treasury auction could impact afternoon trading, but the main focus will likely be the many speeches from Fed members throughout the week.
We offer traditional Conventional, FHA, VA, USDA, Jumbo. Some of the other programs we offer include: First-time Homebuyer loans; HomePossible and HomeReady programs; Custom term loans; HomeStyle and FHA 203k renovation financing; Construction financing; Chenoa Fund loans (100% FHA financing); Conventional, FHA and VA 1x Close Construction-Perm loans; 1.50% Down FHA Advantage Program; CHFA Financing; Modular and manufactured home financing; 10% down Jumbo loans; DSCR loans; Bank Statement loans; Asset-based loans; Non-Warrantable Condos; Interest Only loans; Lot loans; Second mortgages (fixed or HELOC) on primary, second and non-owner occupied residences; Reverse mortgages; and more! To see a detailed list of programs, visit our website: www.homeloanmortgageco.com/mortgageprograms
Last Updated: 5/16/25
Friday's bond market has opened in positive territory following bond-friendly economic news. Stocks are showing minor gains of 41 points in the Dow and 48 points in the Nasdaq. The bond market is currently up 7/32 (4.40%), which with yesterday's afternoon gains, should improve this morning's mortgage rates by approximately .375 of a discount point. If you got an intraday improvement Thursday afternoon, you may see a smaller improvement this morning.
April's Housing Starts report was this morning's first economic release, revealing a 1.6% increase in new home groundbreakings. This was close to expectations and signals slight growth in the new home portion of the housing sector. However, single-family home starts, that are more relevant to mortgage rates than multi-family/apartment construction, fell 2.1% last month. Furthermore, a secondary reading that tracks newly issued permits and indicates future home starts fell for the month. This allows us to consider the data slightly favorable for bonds and mortgage rates.
Also released this morning was the University of Michigan's preliminary Index of Consumer Sentiment for May. It came in lower than expectations, meaning surveyed consumers felt better about their own financial situations last month than this month. This was the fifth consecutive monthly decline in the index as consumers became more concerned about their finances and inflation. Since waning confidence usually transpires into softer consumer spending numbers, this news was favorable for bonds and mortgage pricing.
Next week is much lighter than this week in terms of scheduled economic data for the markets to digest. There are just three monthly reports set for release, two of which are related to the housing sector. The other is April's Leading Economic Indicators from the Conference Board late Monday morning. There is also a Treasury auction midweek that could affect afternoon trading one day. What may be the primary focus is the large number of Fed-member speaking engagements throughout the week. Look for details on the 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.
*https://www.homeloanmortgageco.com/DailyRateLockAdvisory
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