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Interest Rates Drop

ūüŹ°Mortgage rates continue to dip and are historically low today. This should provide continued opportunities for anyone looking to buy a home or refinance their current mortgage. This continued low rate will help sustain the momentum in the housing market this year.
ūüŹ°The current 30-year fixed mortgage as of June 2019 is 3.82%.

(714) – 855 – 9292

Last Week in Review 

What a difference a month makes.
In May, stocks fell sharply, and interest rates declined each week. June has been a different story. The Fed has signaled rate cuts are likely coming. Stocks have been rallying higher, and the decline in interest rates has stalled.
The Fed can’t control home loan rates. Those move mainly on inflation and expectations of inflation in the future. Inflation has remained tame for the past decade and is the main reason why home loan rates have stayed low as well.
This past week, we received another reading on consumer inflation, the Consumer Price Index (CPI), which confirmed there are no price pressures or inflation threat to the economy.
The result: the odds of a Fed rate cut have climbed to 85% for the July Fed Meeting on the idea that the Fed can comfortably cut rates and “allow” inflation to creep into the economy.
Also keeping home loan rates near two-year lows is the uncertainty and lack of resolution with the US/China trade turmoil. The next step is a potential meeting between the US and China at the G20 Meeting on June 28-29. Mark your calendar. This is an important event, because as this trade dispute goes so do the economies around the globe.

Bottom line¬†— we are seeing a strong economy, rising stocks, and two-year lows for home loan rates.

(714) – 855 – 9292

Forecast for the Week 

It’s Fed week!!!

The upcoming week will see data from the housing and manufacturing sectors, but those reports will take a backseat to the two-day Federal Open Market Committee (Fed) meeting.
The meeting kicks off on Tuesday and ends Wednesday with the release of the monetary policy statement which will also include a summary of economic projections. Fed Chair Powell will hold a press conference immediately following the release at 2:30 p.m. ET.
There is no rate cut expected at this meeting, but what comes of the Statement and press conference could move the markets — so stay tuned.
The markets will also have to contend with the continuing saga surrounding the US/China trade issues.
Reports to watch:
  • Manufacturing data comes from Monday’s¬†Empire State Index¬†followed by Thursday’s¬†Philadelphia Fed Index.
  • On Tuesday,¬†Housing Starts¬†and¬†Building Permits¬†will be released with¬†Existing Home Sales¬†being delivered on Friday.
  • As usual,¬†Weekly Initial Jobless Claims¬†will be released on Thursday.
Chart: Fannie Mae 4.0% Mortgage Bond (Friday, June 14, 2019)
Japanese Candlestick Chart

Economic Calendar for the Week of June 17 – June 21

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. Jun 17
08:30
Empire State Index
Jun
NA
10.1
Moderate
Tue. Jun 18
08:30
Housing Starts
May
NA
1.139M
Moderate
Tue. Jun 18
08:30
Building Permits
May
NA
1.269M
Moderate
Wed. Jun 19
14:00
FOMC Meeting
Jun
NA
2.50%
HIGH
Thu. Jun 20
08:30
Jobless Claims (Initial)
6/15
NA
NA
Moderate
Thu. Jun 20
08:30
Philadelphia Fed Index
Jun
NA
8.5
HIGH
Fri. Jun 21
10:00
Existing Home Sales
May
NA
5.19M
Moderate

If you or someone you know has questions about home loans, give us a call.

We’d be happy to help. (714) – 855 – 9292

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The ARK TEAMS

Let’s talk about your real estate plans, please contact us to set an appointment!
We look forward to working with you! And please remember -- We love referrals.
Phone: (714) . 855 . 9292
E-mail: arkteams4u@gmail.com
Website: www.arkteams.com
Our Address 1 : 25950 Acero Suite 100, Mission Viejo, CA 92691
Address 2 : 24851 Del Prado, Dana Point, CA 92629

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