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FIRST TEAM’S WEEKLY MORTGAGE WATCH (June 11th, 2017) THIS WEEK HIGHLIGHTS THE FOLLOWING UPDATES:
- Mortgage rates found room to trend downward last week, as politics weighed heavily on financial markets.
- Domestically, the drama surrounding all things Russia continued to decrease the odds of the new administration completing any real regulatory or tax reform program.
- “Across the pond,” the UK’s snap election resulted in a hung parliament, which translates into more uncertainty for the start of the BREXIT negotiations.
- All of this pushed even more money into US Treasuries and bonds.
- This week is heavy with economic data and a Fed meeting. Markets have already “baked in” another rate increase, but analysts will be scouring everything released from the Fed.
- The big question will be how likely the Fed is to raise rates again.
- A more dovish outlook from the Fed could actually help pull rates downward, slightly. This could easily be reinforced if any of the big economic reports, including Retail Sales or Industrial Production, come at, or under, expectations.
- If the Fed surprises the market with no change to its rates, then we could see rates falling even further.
Survey Says: Now Is The Time To Sell
According to the latest Home Purchase Sentiment Index from Fannie Mae, 32% of Americans believe that now is a good time to sell their home. This represents the highest level in the seven-year history of this index, and a jump of 6 points over last month. Conversely, and unsurprisingly, the survey saw an 8 point drop to 27% of Americans who believe that now is a good time to buy a home. Interesting, only 40% of respondents believe that home prices will go up.