The Home Loan Mortgage Blog

Weekly Update - 9/4/20

September 4th, 2020 9:44 AM by T. Fanning



Happy Friday, I hope you have a great, long Labor Day weekend!

Rates had a small improvement over last Friday's numbers. 
Next week is shortened due to Monday's Labor Day holiday when the financial and mortgage markets will be closed. The rest of the week brings us few economic reports for the markets to digest, but most of what is scheduled is considered to be highly relevant to bonds and mortgage pricing. In addition to the data, there will also be two Treasury auctions scheduled that are known to affect rates.*

We offer Conventional, FHA, VA, USDA, Jumbo and regular construction financing. Some of our niches include: Chenoa Fund loans; FHA and VA 1x Close Construction-Perm; 1% Down Conventional Program; 1.50% Down FHA Advantage Program; CHFA Financing; Down Payment Protection program; 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: 9/4/20

Friday's bond market has opened in negative territory following the release of this morning's major economic report. Stocks are mixed with the Dow up 91 points and the Nasdaq down 203 points. The bond market is currently down 14/32 (0.68%). That should lead to an increase in this morning's mortgage rates of approximately .125 of a discount point.

Today's big economic release was August's Employment report at 8:30 AM ET that showed the U.S. unemployment rate stood at 8.4% last month while 1.371 million new jobs were added to the economy. The unemployment rate was well below forecasts of 9.8%, making that headline number bad news for bonds and mortgage rates. The payroll number was close to expectations of 1.4 million, so we can consider that number neutral for rates. Average earnings came in well above expectations (up 0.4% vs 0.0%). With the unemployment rate and earnings showing stronger than predicted employment conditions and the payroll number neutral, we can consider the report negative for mortgage rates.

Next week is shortened due to Monday's Labor Day holiday when the financial and mortgage markets will be closed. The rest of the week brings us few economic reports for the markets to digest, but most of what is scheduled is considered to be highly relevant to bonds and mortgage pricing. In addition to the data, there will also be two Treasury auctions scheduled that are known to affect rates. 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.*

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




LO NMLS: 208694 | CO License: 100008854 | Company NMLS ID: 479289
Regulated by the Colorado Division of Real Estate
www.nmlsconsumeraccess.org
Posted in:General
Posted by T. Fanning on September 4th, 2020 9:44 AM

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