August 11th, 2023 4:54 PM by T. Fanning
Hello, TGIF!
Rates were up again this week following the news of inflation creeping up. Next week doesn't have a lot scheduled for the markets to digest, at least not compared to recent weeks. It does include one highly important report on consumer spending and the minutes from last month's FOMC meeting Tuesday and Wednesday respectively. Monday and Friday have nothing of importance set at this time. We should see the most activity in rate movement midweek unless something unexpected happens.*
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: 8/11/23
Friday's bond market has opened in negative territory following stronger than predicted economic data. The major stock indexes are mixed with the Dow up 18 points and the Nasdaq down 87 points. The bond market is currently down 8/32 (4.13%), which with heavy selling late yesterday will cause this morning's mortgage rates to be significantly higher than Thursday's early pricing. You likely saw an intraday increase yesterday, so today's upward move depends on how much of a change you saw yesterday afternoon. The net difference between the two morning price sheets should be somewhere between .625 and .875 of a discount point.
Yesterday's 30-year Treasury Bond auction did not go very well, drawing what can be labeled as a soft demand from investors. This indicates a waning appetite for long-term securities and helped contribute to yesterday's afternoon widespread weakness in bonds. It is hard to imagine that the auction results were the sole reason for the late sell-off, but the snowball selling did start shortly after they were announced at 1:00 PM ET. As bonds spiraled lower, yields rose and many lenders made an intraday upward revision to rates before closing.
The first of this morning's two economic releases was July's Producer Price Index (PPI) at 8:30 AM ET. It revealed a 0.3% rise in both the overall and core readings, exceeding forecasts of up 0.2% for each. The year-over-year numbers showed no significant surprises. We have seen a clear negative reaction to the report, contributing to this morning's increase in rates.
August's preliminary Consumer Sentiment index from the University of Michigan came in at 71.2, exceeding forecasts of 70.9. However, August's initial estimate was still a decline from July's 71.6. Since this index measures consumer confidence in their own financial situations and gives an indication of future consumer spending trends, it is relevant to the markets and mortgage pricing. We can label this report to be neutral to slightly negative for rates.
Next week doesn't have a lot scheduled for the markets to digest, at least not compared to recent weeks. It does include one highly important report on consumer spending and the minutes from last month's FOMC meeting Tuesday and Wednesday respectively. Monday and Friday have nothing of importance set at this time. We should see the most activity in rate movement midweek unless something unexpected happens. Look for details on all of next week's calendar 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.