mortgage-market-update-6-14-21
The U.S. economic recovery’s pace has fueled inflation worries and led to chatter that the Federal Reserve would consider hiking interest rates and taper bond buying later this year. However, Fed Chair Jay Powell has repeatedly shot down talks of raising rates, indicating the Fed would not consider increases unless inflation stayed above 2% for an extended period.
The average 30-year fixed-rate mortgage remained under 3% for a third consecutive week, and economic data sent mixed signals about which direction rates might head in the near term.
Consumer prices increased 5% in May, the fastest since the financial crisis. Economists generally agreed that the rapid inflation surge is due to temporary factors that will ease up as the recovery continues and the economy returns to normal. The Fed believes inflationary pressures will ease in the months ahead.
Continual floating of longer-term and brand new files, while locking interest rates in time for purchasing loans, is recommended.
| Report | Period | Estimate | Impact |
|---|---|---|---|
| Date: Tue. Jun. 15 | |||
| Retail Sales | May | -0.4% | High |
| Core Producer Price Index (PPI) | May | 0.5% | Moderate |
| Retail Sales ex-auto | May | NA | High |
| Housing Market Index | Jun | 83 | Moderate |
| Empire State Index | Jun | 22 | Moderate |
| Producer Price Index (PPI) | May | 0.5% | Moderate |
| Date: Wed. Jun. 16 | |||
| Building Permits | May | 1.741M | Moderate |
| FOMC Meeting | Jun | Unch | High |
| Housing Starts | May | 1.630M | Moderate |
| Date: Thu. Jun. 17 | |||
| Jobless Claims (Initial) | 6/12 | 357K | Moderate |
| Philadelphia Fed Index | Jun | 43 | Moderate |
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.
Golden Star, Inc. dba Transglobal Lending, 185 W. Chestnut Ave., Monrovia, CA 91016, NMLS # 1437002 (www.transgloballending.com). All rights reserved. Equal Opportunity Employer and Equal Housing Lender. All mortgage products are subject to credit property approval. Rates, Program terms and conditions are subject to change without notice. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend.
