August 30th, 2024 4:02 PM by T. Fanning
Hello, I hope you have a productive and restful three-day weekend. Enjoy your time off!
Economic resilience continues as inflation nears the 2% target and consumer confidence improves. Fed chair Jerome Powell suggests potential mid-September rate cuts to balance inflation and job market stability. Unemployment has risen to 4.3% but remains historically low. Rates concluded the week with a modest rise in comparison to last week's figures.
Next week has few economic reports, but some are impactful. Markets close for Labor Day Monday, with activities starting Tuesday and ending Friday with the Employment Report and a Fed speech. A few moderately important releases fill the gaps.
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
As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!
Last Updated: 8/30/24
Friday's bond market has opened flat after this morning's economic data failed to give us any surprises. Stocks are showing early strength of 57 points in the Dow and 163 points in the Nasdaq. The bond market is currently up 1/32 (3.85%), which should keep this morning's mortgage rates close to Thursday's early pricing.
Yesterday's 7-year Treasury Note auction drew a softer demand from investors than Wednesday's 5-year Note sale did. Bonds did weaken slightly after results were announced at 1:00 PM ET, but it was not enough of a move to cause widespread intraday revisions to mortgage pricing. The negative impact on rates was minuscule at best.
Today's much anticipated data was a bit anticlimactic. The big news was the release of July's Personal Consumption Expenditures (PCE) index within the Personal Income and Outlays report. It showed the Fed's preferred inflation readings were in-line with expectations. The overall PCE for July rose 0.2% as did the core reading. Furthermore, the annual numbers met expectations.
Other numbers in the report include a 0.3% rise in income and a 0.5% increase in spending. The income number was slightly higher than predictions of up 0.2% but spending pegged forecasts. These readings also failed to have a noticeable impact on bond trading or this morning's mortgage pricing.
August's revised Index of Consumer Sentiment from the University of Michigan was also released this morning. They announced a reading of 67.9 that was modestly higher than the preliminary reading of 67.8 two weeks ago. This is just an inconsequential revision that means surveyed consumers more or less felt the same about their own financial situations than previously thought. Accordingly, we are labeling this report neutral for bonds and mortgage rates.
Next week doesn't have a large number of economic reports scheduled, but a couple of them can be highly influential to the financial and mortgage markets. It is a holiday-shortened week with the markets closed for Labor Day Monday. Activities begin late Tuesday morning with the release of August's ISM manufacturing index then end Friday with the almighty Employment report and a Fed-member speech. In between those are a few moderately important releases. Look for details on 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... 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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