June 14th, 2024 10:53 AM by T. Fanning
Heyo, I hope you’re doing well!
The Federal Reserve is keeping its key interest rate unchanged to address elevated inflation. Economic activity remains robust with strong job gains and low unemployment. While inflation is progressing towards the 2% target, it remains high. The Fed now forecasts one rate cut in 2024, down from multiple cuts previously anticipated. Analysts predict a possible rate cut before November's election.
It was a great week for interest rates. Economic reports came in below estimates, causing rates to drop.
Next week holds key economic reports, including the critical Retail Sales report on Tuesday. Monday is quiet, with U.S. markets closed Wednesday for Juneteenth. Additionally, a Treasury auction and several Fed-member engagements are scheduled.
We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans (100% FHA financing); Conventional 0% down; 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
Last Updated: 6/14/24
Friday's bond market has opened in positive territory following favorable economic news and overnight gains in global bond trading. Stocks are showing early weakness with the Dow down 300 points and the Nasdaq down 16 points. The bond market is currently up 12/32 (4.20%), which should improve this morning's mortgage pricing by approximately .125 of a discount point.
Yesterday's 30-year Treasury Bond auction went almost as well as Tuesday's sale. The benchmarks indicated a fairly strong demand from investors, meaning there still is a good appetite for long-term securities. We saw bonds improve slightly after results were announced at 1:00 PM ET, but not enough to cause widespread improvements to mortgage pricing. It appears lenders opted to wait for this morning's pricing to reflect that move.
The University of Michigan posted their preliminary Index of Consumer Sentiment for June at 10:00 AM ET this morning. It revealed consumer confidence in their own financial and employment situations was sharply softer than expected last month, falling from April's 69.1 to 65.6 for May. Forecasts had the index rising noticeably to 73.0, meaning consumers are less likely to spend than many had thought. That is good news for bonds and mortgage rates because weaker consumer spending restricts economic growth.
Next week has a handful of relevant economic reports scheduled, one of which is extremely influential. That would be the Retail Sales report early Tuesday morning. The week starts light with nothing of importance set for Monday and the U.S. financial markets will be closed Wednesday for the Juneteenth recognition. In addition to the data, there is also another Treasury auction and a few Fed-member speaking engagements scheduled. 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
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FL Company License: MBR4416 | FL License: LO89221
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