Mortgage Market Insider
The most important meeting of Fed Chairman Powell’s life
After plummeting all last week, rates finally ratcheted up yesterday. This leaves both the 30-year and 15-year fixed rate mortgages 2 basis points higher, bringing them to 3.12% and 2.52% respectively.
current outlook:
Concerns over inflation reached a fever-pitch this week after May’s consumer price index (CPI) came out. Far exceeding the Fed’s base target of 2%, it revealed a 5% annual increase in headline inflation, the largest jump since the 2008 financial crisis. While most Wall Street investors are unperturbed by this, with 73% of respondents agreeing with the Fed that these effects are only temporary, consumers disagree. According to a New York survey of consumer expectations, a majority believe inflation will stay at 4% through next year before lowering to 3.6% in three years. However, the most important opinions remain those of the Federal Reserve who meet again later today. While they are not expected to make changes to monetary policy at this meeting, the Fed’s tone and language around the economy and its progress will clue investors in to when they might. Furthermore, to make the stakes higher, only two members need to change their vote in order to move up the timeline of increasing the Federal Funds rate to 2023. Alongside this news of rising prices, rental costs for single-family homes are also on the rise. With a 5.4% increase in April, they experienced the most growth in 15 years, which should be good news for those with investment properties or those hoping to buy a home soon.
recent MMI news
Rates drop as the trade deficit narrows
Rates have been tipping back and forth the last few days. But after Treasury yields fell upon the U.S. trade deficit shrinking, the 30-year fixed
Baby Boomers hold on to their lion’s share of the housing inventory
Bonds rallied last week with news of Biden’s expansionary tax plan and assurances from Fed officials that they will maintain the same current strategy. Rates
Rates back off heading into Memorial Weekend
Since last Wednesday when the Fed’s April meeting minutes were released, bonds have taken a hit. The 30-year fixed rate mortgage decreased 6 basis points
Lumber prices slow down construction
After steadily moving up the week before, rates are now holding steady as they await more pertinent information. By midweek, the 30-year fixed rate mortgage
3 signs of inflation to watch out for
Rates have wavered over the past few days in light of a disheartening jobs report but strong company performance. As it stands, the 30-year fixed
Delinquencies fell 11%, the biggest drop in over 10 years
Yields fell yesterday as both stocks and bonds fell. Rates held steady for the most part throughout all this, but are still lower than where
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