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Rate Watch - After the Debt Deal

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Mortgage and Lending with Watermark Capital NMLS #311662
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As we discussed last week, buyers re-entered the treasuries market and brought rates down. As predicted, the debt ceiling negotiations passed through the House and the Senate, avoiding a US debt default. Tuesday, Wednesday, and Thursday all saw lower rates. On Friday, however, we received the jobs report and it contained mixed data.

On the one hand, there were much more jobs added than expected, providing proof of a strong economy and labor market. On the other hand, hourly wages came in lower than expected and inflation ticked up to 3.7% from 3.4% - these are the things the Fed wants to see.

The market is hoping that the increase in the unemployment rate will satisfy the Fed enough to go through with the “pause” for June.
Here is how markets are placing their bets on the upcoming Fed decision.
 

 
 
The Fed meets June 13-14 at which point they will announce their monetary policy. After which, Chairman Powell will speak and answer questions.

Here is what is in store for this week – there isn’t much action planned.

Monday
  • S&P US Services PMI
  • Factory Orders
  • ISM Services
Tuesday
  • None Scheduled
Wednesday
  • US Trade Deficit
  • Consumer Credit
Thursday
  • Initial Jobless Claims
  • Wholesale Inventories
Friday
  • Nothing Scheduled
Chart Check

The recent highs of last week did not quite reach our highs of the beginning of the year and it looks like things are moving lower. I would love to retest the 6 month support line (drawn in black) with enough strength to trend below it. I know we will eventually get there, just a matter of when.
 
 
That's it for this shorter week. As always, please reach out anytime should you, or someone you know, have any questions and/or comments. I'm always here to help!
Posted by

Matt Brady

Branch Manager, NMLS ID#311662

(858)342-8659 cell |

matt.brady@watermarkhomeloans.com  
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 (3)
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I don’t feel like any of us has any control over the stuff, so we shall adapt as usual like any other time.

Jun 05, 2023 07:51 PM
Matt Brady

Laura Cerrano, if I could control it or knew what was going to happen, I would not have to work. :)

Jun 06, 2023 09:09 PM
Charles Ross - eXp Realty LLC
eXp Realty LLC Salina Group - Salina, KS
Love To Help People

Excellent information.Thank you for sharing. Have a wonderful day and a blessed week.

Jun 06, 2023 04:20 AM
Matt Brady

Thank you Charles Ross, I am looking forward to disseminating good news on rate soon.

Jun 06, 2023 09:10 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Matt. Given the current political environment you have to wonder what people are thinking. Many time they are not. Enjoy your day.

Jun 06, 2023 04:58 AM
Matt Brady

I am thinking we should stop printing money and fueling our own inflation Wayne Martin.

Jun 06, 2023 09:11 PM
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