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Housing Market Update | Week of June 3rd

June 3, 2024

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Housing Market Update | Week of June 3rd

Last week, mortgage rates continued to slide closer to 7% after the Federal Reserve’s favorite yardstick for inflation, the PCE report, showed cooler monthly core inflation. This week is a big one for mortgage rates; with the labor market appearing to soften, this week’s flurry of labor data—which includes job openings, ADP jobs reports, jobless claims, and more—could cause rates to continue to drop if the data falls in line with recent trends.

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Last Week's Mortgage Rate Recap

Mortgage Rates Dropped

Despite a shortened week last week, mortgage rates dropped because the monthly core inflation seen in the PCE report came in slightly cooler than expected. The lower consumer spending figures seen in Friday’s report also align with the notion that the labor market is beginning to soften.

This Week's Mortgage Rate Forecast

Rates Could Drop Further

This week is a big one for mortgage rates: it’s jobs week! As we’ve said throughout the year, the likelihood of the Federal Reserve cutting rates this year hinges on weakness in the labor market. Throughout the week, we have a flurry of labor data set to be released, including jobless claims, the ADP jobs report, and the big U.S. employment report. If the data shows prolonged unemployment and increased jobless claims, expect rates to dip further.

As I said before, an appraisal gap is the last thing we want to see at the end of our borrowers’ homebuying journeys. Education is a great way to show them why you are their trusted real estate advisor. Feel free to share my comprehensive blog on why appraisal gaps happen and what to do when one faces an appraisal gap with the borrowers you’re working with.

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Housing Market Update | Week of June 3rd
Last week, mortgage rates continued to slide closer to 7% after the Federal Reserve’s favorite yardstick for inflation, the PCE report, showed cooler monthly core inflation. This week is a big one for mortgage rates; with the labor market appearing to soften, this week’s flurry of labor data—which includes job openings, ADP jobs reports, jobless claims, and more—could cause rates to continue to drop if the data falls in line with recent trends. Last Week's Mortgage Rate Recap Mortgage Rates Dropped Despite a shortened week last week, mortgage rates dropped because the monthly core inflation seen in the PCE report came in slightly cooler than expected. The lower consumer spending figures seen in Friday’s report also align with the notion that the labor market is beginning to soften. This Week's Mortgage Rate Forecast Rates Could Drop Further This week is a big one for mortgage rates: it’s jobs week! As we’ve said throughout the year, the likelihood of the Federal Reserve cutting rates this year hinges on weakness in the labor market. Throughout the week, we have a flurry of labor data set to be released, including jobless claims, the ADP jobs report, and the big U.S. employment report. If the data shows prolonged unemployment and increased jobless claims, expect rates to dip further. As I said before, an appraisal gap is the last thing we want to see at the end of our borrowers’ homebuying journeys. Education is a great way to show them why you are their trusted real estate advisor. Feel free to share my comprehensive blog on why appraisal gaps happen and what to do when one faces an appraisal gap with the borrowers you’re working with.
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