If your client is looking to make a move this summer, the best way to get started is with a mortgage approval. With an approval letter, your client can:
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Potentially avoid losing out to cash buyers
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Show sellers they are serious
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Shop with confidence knowing their budget
Contact me today so your client is ready to move quickly.
Weekly Market Update
Mortgage rates rose this week, as strong economic data and Fed speakers pushed yields higher. We heard from Fed Chair Powell this week, and he confirmed that he will need to see inflation come down more before he will feel comfortable cutting rates. This is not a huge surprise, bond yields have been rising since the last CPI print, but this confirms the Fed stance on the economy. Several other Fed speakers had a similar message as Powell. It is important to note that Fed Funds futures are now pricing in only 1.5 rate cuts this year. The July meeting is a potential cut, along with the November or December meeting—if inflation starts to come down. If inflation does not come down going into the summer, it is unlikely the Fed cuts rates in July. Until we see inflation slowing down, rates likely won’t move lower.
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U.S. 10-year Treasury on Thursday afternoon is at 4.64%.
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Retail Sales came in higher than analyst’s expectations (+0.7% m/m vs expectations of +0.4% m/m).
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Housing Starts came in lower than analyst’s expectations (1.321mm starts vs expectations of 1.485mm starts).
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Building Permits came in lower than analyst’s expectations (1.458mm permits vs expectations of 1.51mm permits).
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Existing Home Sales came in lower than analyst’s expectations (1.812mm sales vs expectations of 1.818mm sales).
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Initial Jobless Claims came in lower than analyst’s expectations (212k claims vs expectations of 215k claims).