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First Team’s Weekly Mortgage Watch (June 22nd, 2014) this week highlights the following updates:
- In what could have been a more dramatic week, mortgage rates managed to stay relatively flat as equity markets hit record highs.
- Last week ended with an employment report revealing that the economy generated 288,000 new jobs last month, with upward revisions to previous months. Additionally, the unemployment rate drop to 6.1%, a level that the Federal Reserve wasn’t predicting until the end of the year.
- For many analysts, this report confirms that the economy is experiencing a “bounce back” from the first quarter’s very weak performance.
- It is worth noting that some analysts are now beginning to discuss the probability that the Fed will increase the Fed’s Fund rate, early next year. While we all know it is coming, an environment of increasing rates will take some adjustment.
- This week is very light in terms of economic reports. Depending on how international bond markets behave, we could see some upward bias for mortgage rates beginning to creep deeper.
- The better our various employment-rated data comes in, the more likely we could see rates moving upward.
- According to a new study from the Joint Center for Housing Studies of Harvard University, minorities will account for more than one-third of US households by 2025, with almost one-half of new households being formed by minorities. Currently, minority households comprise 31.6 percent of current US households. Between 2015 and 2025, the estimated number of US minority households will rise from 122 million to more than 133 million.
Originally posted at: http://www.firstteam.com/blog/?p=8849
