The Home Loan Mortgage Blog

Weekly Update - 9/15/17

September 15th, 2017 1:51 PM by T. Fanning



TGIF! I hope you had a great week!

Rates ended up this week. Next week bring us the release of little economic data, most of which is housing-related. What is of importance is the FOMC meeting mid-week that will include Fed economic projections and a press conference with Fed Chair Janet Yellen. There is nothing of importance scheduled for Monday, so weekend news and stock movement is likely to drive trading as the new week starts.*

We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: a Conventional, FHA and VA 1x Close Construction-Perm; 1% Down Conventional Program; CHFA Financing; HomeStyle renovation program; and a jumbo, 5% down program. We also can do hobby farms, Ag properties and Alt-A (stated income, verified assets for self-employed borrowers)! To see a detailed list of programs, visit our website:  www.hlmcolorado.com/mortgageprograms

As always, please let me know if I can help you/friends/family/potential buyers/borrowers!

Last Updated: 9/15/17

Friday's bond market has opened flat even though we saw quite favorable results in this morning's economic data and N. Korea fired another missile over Japan last night that had previously caused a strong positive reaction in bonds. Stocks are showing minor gains with the Dow up 25 points and the Nasdaq up 3 points. The bond market is currently down 6/32 (2.20%), but we should see little change in this morning's mortgage rates.

The Commerce Department kicked off this morning's batch of releases with August's Retail Sales report. It revealed a 0.2% drop in consumer level spending last month, falling short of the 0.1% increase that was expected. A secondary reading that exclude more costly and volatile auto transactions also came in light (up 0.2% versus 0.5%). This data indicates that consumers spent less than thought last month, making the data good news for mortgage rates because weaker spending should translate into weaker overall economic growth.

August's Industrial Production data was second, coming at 9:15 AM ET. This data showed a 0.9% decline in production at U.S. factories, mines and utilities. That was well off from forecasts of a 0.2% increase, but the decline is being attributed to Hurricane Harvey and not a quickly softening industrial sector. Therefore, the news isn't having an impact on bond trading or mortgage pricing.

The third report of the morning was the University of Michigan's Index of Consumer Sentiment for September that came in at 95.3. That reading nearly matched expectations of 95.5 and was a decline from August's final of 96.8. The decline in good news for mortgage rates waning confidence usually translates into weaker levels of consumer spending. However, because it was very close to forecasts and comes in a moderately important release, we have not seen much of a reaction to this news.

Next week bring us the release of little economic data, most of which is housing-related. What is of importance is the FOMC meeting mid-week that will include Fed economic projections and a press conference with Fed Chair Janet Yellen. There is nothing of importance scheduled for Monday, so weekend news and stock movement is likely to drive trading as the new week starts. 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...
Float 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.*

*http://www.hlmcolorado.com/DailyRateAdvisory




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Posted in:General
Posted by T. Fanning on September 15th, 2017 1:51 PM

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