An extremely light week following the FOMC, with the only note-worthy reporting being the Consumer Sentiment reports from the University of Michigan, which gives a long term outlook of the consumer on the economy. The report has come in well under expectations, much more so than any previous release in the last 6 months. This is largely due to the increase in the cost of living for every sector.
Consumer Sentiment
The University of Michigan’s gauge of consumer sentiment fell to 67.4 in a preliminary May reading, down from 77.2 in the prior month.
Primary Mortgage Market Survey Index
- 15-Yr FRM rates are seeing a decrease by -0.09% with the current rate at 6.38%
- 30-Yr FRM rates are seeing a decrease by -0.13% with the current rate at 7.09%
MND Rate Index
- 30-Yr FHA rates are seeing a -0.08% decrease for this week. Current rates at 6.62%
- 30-Yr VA rates are seeing a -0.08% decrease for this week. Current rates at 6.64%
Jobless Claims
Initial Claims were reported to be 231,000 compared to the expected claims of 214,000. The prior week landed at 208,000.
What’s Ahead
Next week we’re expecting new rounds of inflation data from CPI and PPI reports. Given the current data that has been released, the inflation problem is expected to still be a small sticking issue.
MAY
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.