Investment

mortgage-market-update-5-24-21

Categories: Financial News, Real Estate + LendingPublished On: May 24th, 2021Comments Off15.2 min read

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Unemployment rates were lower in April in 12 states and the District of Columbia while remaining stable in 38 states, the U.S. Bureau of Labor Statistics reported today. Many states — currently about 21 — have decided to pull the $300 in enhanced federal unemployment benefits due to concerns that people do not have an incentive to resume employment.

Sales of existing homes dropped 2.7% in April to a seasonally adjusted annualized rate of 5.85 million units, according to the National Association of Realtors, and the supply of homes for sale was down 20%. High demand and rock-bottom supply continued to push prices higher.

The bond markets continue to take their cue from the Fed with the notion that the recent spike in inflation will be transitory. The Fed will be purchasing up to $5.164B in mortgage-backed-securities today.

Under the volatile market, keeping an eye on the market and/or locking interest rates in time is strongly recommended.

Economic Calendar

Report	Period	Estimate	Impact
Date: Tue. May. 25
New Home Sales	Apr	950K	Moderate
Consumer Confidence	May	119.0	Moderate
S&P/Case-Shiller Home Price Index	May	11.7%	Moderate
Date: Thu. May. 27
Gross Domestic Product (GDP)	Q1	6.4%	High
GDP Chain Deflator	Q1	NA	High
Durable Goods Orders	Apr	0.7%	Moderate
Pending Home Sales	Apr	5.0%	Moderate
Jobless Claims (Initial)	5/22	422K	Moderate
Date: Fri. May. 28
Personal Consumption Expenditures and Core PCE	Apr	0.7%	High
Consumer Sentiment Index (UoM)	May	82.9	Moderate
Personal Consumption Expenditures and Core PCE	YOY	3.0%	High
Chicago PMI	May	NA	Moderate
Personal Income	Apr	-14.0%	Low
Personal Spending	Apr	0.6%	Low

Daily rate based on: SFR/Primary/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.