Mortgage Market Update 10-23-20

There’s a big week ahead for the market with increased earnings, GDP data, and stimulus negotiations.

Bonds are slightly lower and yields modestly higher while stocks trade in positive territory on stimulus hopes.

Traders continue to look to D.C. for stimulus headlines though hopes of a deal before the November 3 election are fading. Nonetheless, a deal is coming, news of which is supporting stock prices at the expense of bonds.

There are no economic reports due for release today, but stay tuned for next week’s activities.

The Fed will be purchasing up to $4.042B in mortgage-backed-securities today.

It is recommended to float brand new clients and files with a longer time to close; pay close attention to the market to see if bonds can recover and the yield rises.

Economic Calendar

Report

Period

Estimate

Impact

Date: Mon. Oct. 26

New Home Sales

Sep

1.0M

Moderate

Date: Tue. Oct. 27

Consumer Confidence	Oct	102.8	Moderate
Durable Goods Orders	Sep	0.3%	Moderate
S&P/Case-Shiller Home Price Index	Aug	NA	Moderate

Date: Thu. Oct. 29

Jobless Claims (initial)	10/24	792K	Moderate
Pending Home Sales	Sep	3.4%	Moderate
Gross Domestic Product (GDP)	Q3	32.5%	High
GDP Chain Deflator	Q3	NA	High

Date: Fri. Oct. 30

Personal Consumption Expenditures and Core PCE	Sep	0.3%	High
Consumer Sentiment Index (UoM)	Oct	79.0	Moderate
Personal Consumption Expenditures and Core PCE	YOY	1.4%	High
Personal Income	Sep	0.5%	Moderate
Employment Cost Index (ECI)	Q3	0.5%	High
Personal Spending	Sep	1.0%	Moderate
Chicago PMI	Oct	61.0	High

Today’s Rate

Oct 23, 2020

Conforming Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	2.500%	2.567% APR
15yr Fixed	2.000%	2.067% APR

High Balance Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	2.500%	2.567% APR
15yr Fixed	2.125%	2.192% APR

Jumbo Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	3.000%	3.067% APR
15yr Fixed	3.000%	3.067% APR

Daily rate based on: SFR/Primay/LTV60/FICO 780/Purchase

IMPORTANT: Advertised rates were valid and effective as of the date reflected above, are for informational purposes only, and are subject to change without notice.

Loans are subject to credit and collateral approval. Advertised rates are based on a set of loan assumptions including a borrower with excellent credit history and optimal loan characteristics. Your final interest rate and annual percentage rate (APR) may differ depending on your individual transaction’s specific characteristics, and certain products may not be available for your situation. Several determining factors include, but are not limited to, the state of the property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value, and credit score.

APR reflects the cost of credit over the term of the loan expressed as an annual rate. For mortgage loans, APR may include the interest rate, discount points (also referred to as “points”), and other charges or fees (such as mortgage insurance and origination fees), but does not necessarily take into account other loan-specific finance charges you may be required to pay.