June 20th, 2025 11:16 AM by T. Fanning
Happy Friday, I hope you have a good weekend!
This week, US economic news showed a mixed bag. Inflation slowed down in May, which is good news for the Federal Reserve and could lead to interest rate cuts. However, retail sales were weaker, suggesting consumers are spending less, and the job market is cooling slightly. Manufacturing also continues to struggle. So, while inflation is improving, there are signs the economy is slowing. Rates ended the week slightly higher.
Next week, mortgage rates could shift based on a few key factors: upcoming economic reports like May's home sales and Friday's inflation update, along with speeches from Federal Reserve Chairman Powell and other Fed officials, whose comments can sway the bond market.
We offer traditional Conventional, FHA, VA, USDA, Jumbo. Some of the other programs we offer include: First-time Homebuyer loans; HomePossible and HomeReady programs; Custom term loans; HomeStyle and FHA 203k renovation financing; Construction financing; Chenoa Fund loans (100% FHA financing); Conventional, FHA and VA 1x Close Construction-Perm loans; 1.50% Down FHA Advantage Program; CHFA Financing; Modular and manufactured home financing; 10% down Jumbo loans; DSCR loans; Bank Statement loans; Asset-based loans; Non-Warrantable Condos; Interest Only loans; Lot loans; Second mortgages (fixed or HELOC) on primary, second and non-owner occupied residences; Reverse mortgages; and more! To see a detailed list of programs, visit our website: www.homeloanmortgageco.com/mortgageprograms
As always, please let me know if I can help you, your friends/family/potential buyers/borrowers!
Last Updated: 6/20/25
Friday's bond market has opened in negative territory, extending Wednesday's post-FOMC weakness. Stocks are showing early gains with the Dow up 131 points and the Nasdaq up 36 points. The bond market is currently down 7/32 (4.41%), which should cause an increase in this morning's rates of approximately .125 of a discount point if compared to Wednesday's early pricing. The financial markets were closed yesterday for the Juneteenth holiday.
This week's economic calendar concluded late this morning with the release of May's Leading Economic Indicators (LEI). The Conference Board announced a decline of 0.1% in the indicators, meaning they are predicting modestly slower economic activity over the next few months. This matched what analysts were expecting. However, a 0.4% downward revision to April's reading allows us to label the report slightly favorable for rates, even though it isn't having a noticeable impact this morning.
Next week brings us plenty that has the potential to affect mortgage rates. Economic data begins Monday morning with the release of May's Existing Home Sales report and continues throughout the week with at least one piece of data set to be posted each day. The more important releases are set for later in the week, including a key inflation reading Friday morning. We also have two semi-annual congressional appearances by Fed Chairman Powell that will draw lots of attention midweek.
On a related note, now that the FOMC meeting is behind us, the Fed's mandatory quiet period has expired. This means Fed members are free to speak about the economy and other relevant topics. There is a large number of speeches scheduled next week that may draw a reaction in the bond market. Look for details on all of next week's activities in Sunday evening's weekly preview.
If I were considering financing/refinancing a home, I would....
Lock if my closing were taking place within 7 days... Lock if my closing were taking place between 8 and 20 days... Float if my closing were taking place between 21 and 60 days... Float if my closing were taking place over 60 days from now...
This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
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