The week after the inflation data reports was expected to be relatively quiet, with the most significant event being a meeting with Federal Reserve Chairman Jerome Powell. He remained tight-lipped about when rate cuts would happen, but given his demeanor, he did not deny that rate cuts were on the way — simply that he would not indicate when they would arrive. This has only confirmed to lending partners and the broader market that they were right to feel optimistic that rate cuts are possible before the end of the year.
There were a few cyclical reports released, with the Economic Indicators report taking the lead and the Federal Reserve’s Beige Book being among the highlights.
Economic Indicators
The leading index for the economy fell again in June for the fourth month in a row, reflecting a slowdown in U.S. growth since the beginning of the year. The privately run Conference Board said the index slid 0.2% last month. The index had fallen for two straight years before briefly turning positive in February.
Federal Reserve’s Beige Book
U.S. economic activity seemed to soften in the past two months, with five of the Federal Reserve’s 12 regions reporting flat or declining activity, a Fed survey released Wednesday found. That is three more weak districts than were reported in the last survey, in May.
Primary Mortgage Market Survey Index
- 15-Yr FRM rates are seeing a decrease by -0.12% with the current rate at 6.05%
- 30-Yr FRM rates are seeing a decrease by -0.12% with the current rate at 6.77%
MND Rate Index
- 30-Yr FHA rates are seeing an increase by 0.07% for this week. Current rates at 6.32%
- 30-Yr VA rates are seeing an increase by 0.08% for this week. Current rates at 6.34%
Jobless Claims
Initial Claims were reported to be 243,000 compared to the expected claims of 229,000. The prior week landed at 223,000.
What’s Ahead
Next week, the government will release the Consumer Confidence Report and the total U.S. employment data. Both of these reports should provide insights into the state of the economy and consumer sentiment.
ShareJUL
About the Author:
Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.