WEEKLY MORTGAGE NEWSLETTER

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

Monday, July 10 , 2017

 

Last Week in Review:

Employers added 222,000 new jobs in June, well above expectations, the Labor Department reported. April was revised up from 174,000 to 207,000, and May was revised up from 138,000 to 152,000 jobs. With these revisions, employment gains in April and May combined were 47,000 more than previously reported. The unemployment rate was little changed at 4.4 percent. Employment growth has averaged 180,000 per month in 2017, in line with the average monthly gain of 187,000 jobs in 2016.

However, average hourly earnings showed just a 0.2 percent gain from May and 2.5 percent gain year over year. May’s reading was revised lower to just 0.1 percent.

Also of note, the minutes from the June Federal Open Market Committee (FOMC) meeting were released. While investors were looking for a signal to when the Fed might start trimming its $4 trillion balance sheet, the minutes showed a divided group on the timing. Mixed economic growth and tame inflation remained central to FOMC discussions as the committee crafted monetary policy. Strong economic news and rising inflation can negatively impact Bond prices and the home loan rates tied to them.

A big market mover this week came courtesy of the Fed’s equivalent overseas, the European Central Bank. Positive economic outlook catapulted yields in Europe.

For now, home loan rates here at home remain in attractive territory.

 

The bottom line is that home loan rates remain low, and now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

 

Forecast for the Week:

Inflation and Retail Sales numbers are the ones to watch.
  • Although not an economic report, the Fed’s Beige Book releases Wednesday, giving anecdotal information on business and economic conditions across the country.
  • Thursday brings wholesale inflation via the Producer Price Index as well as the usual weekly Initial Jobless Claims.
  • The Consumer Price IndexRetail Sales and Consumer Sentiment Index are scheduled for Friday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

The bottom line is that home loan rates remain near some of their best levels, and now is a great time to consider a home purchase or refinance.

 

The opinions expressed above are those of Derek McClintock and not C2 Financial Corporation NMLS# 135622 | CA BRE # 01821025.  Rates change every day and sometimes many times throughout the day. For your current mortgage situation, please contact Derek directly and he will help you price out your home loan rate for that particular day at that particular time.