Categories: Financial News, Real Estate + LendingPublished On: June 21st, 2021Comments Off on mortgage-market-update-6-21-2120.8 min read

The Federal Reserve said Wednesday it will keep its benchmark interest rate near zero despite signs the economic recovery is well underway. Fed officials did indicate that rate hikes could come as soon as 2023.

Freddie Mac’s Chief Economist Sam Khater said on Thur, “Mortgage rates continued to drift down as markets concur with the view that inflation increases are temporary.” Purchase demand has decreased the last few months, primarily due to high home prices. “With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller’s market.” said Khater.

Total loan application volume rose 4.2% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Refinances led the gains, rising 6% for the week. They were still 22% lower than before because so many borrowers already refinanced last fall, when rates hit record lows.

The Fed will be purchasing up to $4.924B in mortgage-backed-securities today.

Continual floating of most files and closely monitoring the markets are recommended.

Report Period Estimate Impact
Date: Tue. Jun. 22
Existing Home Sales May 5.71M Moderate
Date: Wed. Jun. 23
New Home Sales May 870K Moderate
Date: Thu. Jun. 24
Gross Domestic Product (GDP) Q1 6.4% Moderate
Durable Goods Orders May 1.9% Moderate
Jobless Claims (Initial) 6/19 401K Moderate
Date: Fri. Jun. 25
Personal Consumption Expenditures and Core PCE May 0.6% Moderate
Personal Consumption Expenditures and Core PCE May 3.5% Moderate
Personal Spending May 0.4% Moderate
Consumer Sentiment Index (UoM) Jun 85.0 Moderate
Personal Income May -2.0% 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.

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