Currently, the Retail Sales Report is the sole report that has weight. With the passage of more optimistic inflation data reports, retail sales coming in slightly under expectations will have little to no bearing on the overall outlook. Given the last major reports indicating the economy’s health and state of inflation, there is more optimism toward a potential rate cut this year. Lending partners have still been quick to continue cutting rates.
Consumer Price Index
Sales at U.S. retailers barely rose in May, suggesting Americans are feeling the weight of lingering inflation and high interest rates. Sales edged up 0.1% last month. They had been forecast to rise 0.2%, based on a Wall Street Journal poll of economists.
Primary Mortgage Market Survey Index
- 15-Yr FRM rates are seeing a decrease by -0.04% with the current rate at 6.13%
- 30-Yr FRM rates are seeing a decrease by -0.08% with the current rate at 6.87%
MND Rate Index
- 30-Yr FHA rates are seeing an increase by 0.05% for this week. Current rates at 6.49%
- 30-Yr VA rates are seeing an increase by 0.05% for this week. Current rates at 6.50%
Jobless Claims
Initial Claims were reported to be 238,000 compared to the expected claims of 235,000. The prior week landed at 243,000.
What’s Ahead
One of the Federal Reserve’s preferred inflation data points will be released next week in the PCE Prices Report, followed closely by the Chicago PMI and the Univ. Michigan Consumer Sentiment reports.
ShareJUN
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.