Weekly Rate Watch 6/6/2022

By
Mortgage and Lending with Finance Of America NMLS #311662

In The News

 

The world will be watching CPI numbers released Friday. During last month’s report, we saw a dip in year over year inflation but the month over month still grew, albeit slowly. If this next report shows a decrease in rate month over month, the markets will bet that inflation has peaked and we should see a nice breather in rates.

 

Tuesday

 

  • Foreign Trade Balance

 

Wednesday

 

  • 10yr Treasury Auction

 

Thursday

 

  • Initial and Continuing Jobless Claims
  • ECB rate decision

 

Friday

 

  • CPI numbers
    • MoM & YoY
  • 5 Yr Inflation Expectations
  • Federal Budget Balance

 

Chart Check (see above)

 

We had a great little breather 2 weeks ago and last week had some adjustments to the worsening side. If we can form a “W” double bottom (without breaking the lower support to the downside) odds are we break out to the higher the side (which would equate to lower rates). Again, a lot rides on this Friday’s reports.

 

 

 

That’s it for this week. The following week we have the June Fed meeting where expectations are a 50bp increase. I think we’ll see it. Biden has come out publicly announcing inflation is his and the Fed’s main priority. Plus, in order to cut rates when the threat of recession becomes very real, the fed will need some gun powder (aka raise rates now to cut them later).

 

Click HERE to stay current with the Fed’s meetings this year. You can also view the statements and minutes from previous meetings.

Posted by

Matt Brady

Builder Sales Manager, NMLS ID#311662

(858)342-8659 cell |844-268-1952 fax

mabrady@financeofamerica.comfamadvisor.com/matthewbrady   
8885 Rio San Diego Dr │ Suite 201  San Diego, CA 92108     

 

BIA SanDiego 19 year Member and P2 Sponsor

 

BIA SMCBoard Member since 2012

 

 

 

 

Comments (2)

Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Well as the shopper in my family I don't expect we've peaked, because my bills keep increasing.... at the pump, at the meter, at the supermarket, eating out etc.

Jun 06, 2022 11:43 AM
Matt Brady

It is painful Tammy Lankford and in some instances unnecessary. 

Jun 07, 2022 06:17 PM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Hello Matt, great information to share with us here on the rain.  Most people need this advice. bill

Jun 06, 2022 12:05 PM
Matt Brady

Thanks Bill, I try to be occasionally useful :)

Jun 07, 2022 06:18 PM