August 9th, 2024 2:33 PM by T. Fanning
Happy Friday! Enjoy your weekend!
Recent economic data has sparked concerns the Fed missed signaling an upcoming rate cut. Traders now expect a half-point cut in September, with aggressive reductions in 2025, potentially totaling up to 2.25%. Rates ended the week a smidge higher.
Next week is pivotal for mortgage rates with major inflation reports on Tuesday and Wednesday, and a consumer spending measure on Thursday. Several Fed-member speeches and reports will also be watched. Monday is quiet, so weekend news and stocks will heavily impact bond trading and mortgage pricing as the week begins.
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: 8/9/24
Thursday's bond market has opened well in positive territory even though there are no major headlines to drive trading this morning. Stocks are showing early losses of 54 points in the Dow and 55 points in the Nasdaq. The bond market is currently up 16/32 (3.93%), which should improve this morning's mortgage rates by approximately .250 of a discount point.
Yesterday's 30-year Treasury Bond auction followed suit of Wednesday's 10-year Note sale. The benchmarks we use to gauge demand for the securities showed another weak interest from investors. The 1:00 PM ET results announcement caused a slight negative reaction in the bond market, but not enough to create widespread intraday rate increases. Most lenders opted to wait until this morning's pricing to reflect that move.
There is nothing of importance scheduled for today. We are seeing a little bit of a reaction to early stock weakness but also just a situation where traders are closing out positions after an extremely volatile week. The latter is likely more the case as they prepare for next week's economic news. Regardless of the reason, it looks as if bonds and mortgage rates are going to end the week on a positive note.
Next week has plenty scheduled that is expected to influence mortgage rates. There are a few highly important economic reports scheduled, including two major inflation readings Tuesday and Wednesday along with a key measure of consumer spending Thursday. In addition to that group, there are also a handful of moderately important reports and several Fed-member speeches that we will be watching. Monday is the only day without at least one item listed, meaning weekend news and stocks will likely have the biggest impact on bond trading and mortgage pricing as the new week begins. 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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