The Home Loan Mortgage Blog

Weekly Update - 9/20/19

September 20th, 2019 1:23 PM by T. Fanning



TGIF!

Rates had a small decrease from last Friday's numbers. The other big news is the Fed decreased the Fed Funds Rate by .25%. There is a common misconception that this decrease directly affects mortgage rates. When the decrease was announced, mortgage rates actually increased by a small amount. 

Next week brings us the release of several economic reports that have the potential to move rates. The most important reports are scheduled late in the week, so the early days may be the calmest. Monday's calendar is empty, meaning weekend news and stock movement will likely drive bond trading and mortgage pricing as the new week begins.
*


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: 9/20/19

Friday's bond market has opened in positive territory, giving us hope to close the week on a good note. Stocks are showing moderate gains of 66 points in the Dow and 9 points in the Nasdaq. The bond market is currently up 4/32 (1.77%), but a little weakness late yesterday should keep this morning's mortgage rates close to Thursday's early pricing. If you saw an intraday upward revision yesterday afternoon, you may see a slight improvement this morning.

There is nothing scheduled for release today that is expected to affect mortgage rates. We do have a couple of Fed member speaking engagements, but unless they tell us something that we don't already know they will likely have little influence on mortgage rates today.

It is worth noting that the benchmark 10-year Treasury Note yield appears to be stuck above 1.75%. There seems to be a strong resistance point there that is preventing it from breaking below. The problem with that is mortgage rates tend to track bond yields. Until that threshold is broken, it may be difficult for mortgage rates to move much lower and there is little scheduled over the next few business days to push it over the hump.

Next week brings us the release of several economic reports that have the potential to move rates. The most important reports are scheduled late in the week, so the early days may be the calmest. Monday's calendar is empty, meaning weekend news and stock movement will likely drive bond trading and mortgage pricing as the new week begins. Look for details on all of next week's events 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 20th, 2019 1:23 PM

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