Market Comment
Mortgage bond prices finished the week slightly positive which kept rates relatively neutral. Rates improved Monday morning as stock struggled, were relatively flat Tuesday into Wednesday morning, and then saw some selling pressure late Wednesday into Thursday. The data showed some signs of strength. The FHFA house price index rose 1.8% as expected. Consumer confidence was 127.3 vs the expected 119.5. Weekly jobless claims were a better-than-expected 364K vs 395K. ISM Index was 60.6% vs 60.2%. Unemployment came in at 5.9% vs the expected 5.7%. Non-farm payrolls rose 850K vs 700K. Average hourly earnings rose 0.3% vs 0.4%. Mortgage interest rates finished the week unchanged to better by approximately 1/8 of a discount point.
Looking Ahead
| Economic Indicator | Release Date & Time | Consensus Estimate | Analysis |
| July 4th Holiday Observed | Monday, July 5 | Important. Trading may be volatile Tuesday after the extended holiday weekend. | |
| Fed Minutes | Wednesday, July 7, 2:00 pm, et | None | Important. Details of the last Fed meeting will be thoroughly analyzed. |
| Weekly Jobless Claims | Thursday, July 8, 8:30 am, et | 365K | Important. An indication of employment. Higher claims may result in lower rates. |
| Consumer Credit | Thursday, July 8, 3:00 pm, et | $22.5B | Low importance. A significantly large increase may lead to lower mortgage interest rates. |
Mortgage Professionals
Obtaining a mortgage is often a confusing task that can also lead to frustration. The reason for the confusion is due to the fact that mortgage financing is complex. The good news is that this complexity provides consumers with options and choices best suited to fit their needs.
Everyone’s financial position is unique. Some people have large cash reserves that can be used for down payments while others want to get into a home with little or no money down. Credit ratings vary from person to person. In addition, future plans vary. Some people plan on staying in their home for the rest of their lives while others only plan on staying for a few years. These facts alone make comparing your mortgage to your neighbor’s based on rate alone a flawed endeavor, yet many people attempt to do so.
Admittedly, everyone wants a good deal. Keep in mind that comparing rates is just one component of the entire mortgage. Other variables include the term, down payment requirements, income qualifications, credit ratings, reserve requirements, current debt, prepaid points, and many more. A mortgage professional can take all of these variables that are unique to each individual and help a person obtain the loan that best fits their situation. The service they provide is time consuming andcomplex. However, the rewards of dealing with a professional carry forward throughout a borrower’s life. Making wise financial decisions today helps to pave the way for a safe and secure future.
Mortgage interest rates currently remain historically favorable despite some recent increases. There is much uncertainty about the future of the economy. A cautious approach to lock decisions is wise.