Market News 06-21-19
Mortgage Market Update
The Fed kept policy rates unchanged at this week’s FOMC meeting. However, the policy statement left the door open for possible rate cuts later this year. The 10yr Treasury yield dropped below 2% this week for the first time since November 2016. Falling yields could indicate that lower rates are yet to come. Bonds aren’t the only ones improving. Stocks are also hitting record highs after global central banks have signaled a willingness to stimulate growth.
Home builder sentiment retreated slightly in June, according to the monthly NAHB index, despite lower mortgage rates and demand for single-family homes. Housing starts dropped in May, but groundbreaking activity the prior 2 months was stronger than previously thought, pointing to housing market improvement. Building permits rose 0.3% in May, for a second straight month. Permits to build single-family homes were up 3.7%, after 5 straight months of declines.