Well that was close… The debt ceiling problem has finally been resolved. Now, everyone will not be happy about the way it ended or what concessions had to be make in order to make it work, but that’s a different video. Today we have to go into this week acknowledging that its passed means which means low to no interruption between the mortgage and real estate industries and the government agencies we interact with during the process of buying and refinancing homes. Thank goodness.
So what does that mean for mortgage rates Andy?
Mortgage rates had been headed up last week due to the numerous setbacks in the debt ceiling negotiations. Also, there has been a return in buyer appetite and the mortgage market seems to have found a sweet spot. There are people willing to still buy homes at today’s rates because they would rather be IN the market than OUT of the market. The tight sideways range of rates we’d seen just trended upwards last week and might create a new pricing zone for the type of interest rates we will see ahead.
The markets will now turn their focus on fed member sentiment and how likely The Fed is to pause at their next meeting in June, or surprise the markets with another rate hike due to inflations slowing pace not being slow enough.
Here’s a quick look at what we’re watching in the markets this week:
Monday, today. It is Memorial Day, banks and financial markets are closed.
Tuesday: We get Consumer confidence reading.
Wednesday: JOLTS and several Fed members are speaking
Thursday: ADP non farm payroll & ISM manufacturing PMI come out
Friday: Average Hourly earnings, non-farm employment change, and Unemployment rate hit us.
And above all, we just need to know what this debt ceiling resolution looks like so we can make any adjustments
And that’s it for this episode. Let us know how we can help you win in mortgage and real estate!
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