http://MikesDailyMarketReport.com: The Case Shiller Home Price Index (HPI), which measures home prices in the 20 largest metros in US, rose 1.8% in April while it's YoY rose to 21.2% (after March lower revision from 21.2% to 21.1%). The FHFA HPI, which follows conforming loans, rose 1.6% in April while it's YoY dipped to 18.8% (from 19.1%). Lastly, the Consumer Confidence continues to drop, as it dipped all the way to 98.7 in June. This is important because if Consumers aren't feeling good about the economy, then they will stop buying, which in turn helps the economy to continue to move along; but the high inflation (namely food and energy) are eating away at many peoples' ability to buy any of the extras in their life (and thus not feeling good about it). Stocks started up earlier on news from China on more loosening of COVID restriction; however, that changed after the US data were released. NY Fed Williams noted that he feels the economy will slowdown, but won't go to recession. However, there are some economists already stating that we may already be in a recession; and many more are concerned with those very prospects possibly happening. MBS started lower today, but seemed to maintain between -8 and -11bps for mid-day; and toward end of the day has slightly improved to -5bps. We may not see any changes with Mortgage Rates today, but there may be some changes with the pricing. The 3.20% seem to be holding the Yields and is currently just under 3.19%. Remember, the PCE report will be released on Thursday. The CPI report that was released a few weeks ago have a severely negative effect with the Markets. The PCE carries a bit more weight, as it's the Fed's favorite gauge for Consumer inflation. So, be prepared ahead of time!
**As Mortgage Rates spiked over 6% over past few days, ask me about our 7/6 ARM, which may be a good alternative for you or your client. Contact me today!**
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