Due to the recent decline in the 30-year mortgage, refinancing your current mortgage could be beneficial to a large portion of mortgage holders. Black Knight reports that there are nearly seven million Americans that hold a mortgage that can now refinance at a lower rate of at least a 0.75% difference between their current mortgages and today's rates. The average savings could equate to $268 a month. Black Knight says that if each eligible mortgage holder refinanced, it would be an aggregate savings of of $1.8 trillion a month, which would surely boost consumer spending.
US stocks are higher to begin the new week and is adding to last week's gains. Stocks got a boost last week when the Federal Reserve signaled that the central bank may cut rates in 2019 in order to keep the economic expansion on track. Adding to the positive vibes in the equity markets this Monday morning is word the White House canceled tariffs on Mexico, citing progress on border security. The closely watched S&P 500 Stock Index is up 6.2% from June 3.
Fannie Mae reports that Americans' confidence in housing was near its survey in May fueled by a big jump in the "good time to buy" component. Fannie Mae released its Home Purchase Sentiment Index for May showing an increase of 3.7 points to 92, just below the 92.3 set in may 2018. A 13-percentage point increase if the "good time to buy" component drove the index higher. "Consumers’ sense of income growth and job security have moved lower from the highs established earlier in the year, which, if sustained, could weigh on the housing market in the second half of the year,” said Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae.