Market Review

►A LOOK BACK – Last week the May Producer Price Index and Consumer Price Index reported mortgage market friendly information showing that inflation pressures at the lowest since 1950. The Treasury Dept. announced the sale of $40 billion of 2-year notes (Tues.), $37 billion of 5-year notes (Wed.) and $27 billion of 7-year notes (Thurs.) for a total of $104 billion topping the previous record for notes sold at auction. This announcement pressured interest rates higher as investors fretted over the market’s ability to absorb that amount of supply.

►WHAT’S AHEAD – A busy week of meetings, reports and auctions is in store. The FOMC meets on Tues. and Wed. and the question is whether they will expand their direct purchase program for Treasury debt obligations and mortgage-backed securities. Economic reports include the May Existing and New Home Sales reports, the final revision of Q1 GDP and the May Personal Income and Spending report. Of course the $104 billion of Treasury auctions will strongly influence the direction of mortgage rates.

Greg Burkett

Preferred Home Loan, Ltd.

281/657-0472 x 301 (Office)

713/906-2883 (Cell)

gregb@preferredhl.com

If you are in the market to purchase Katy homes, condos, or other property types, be sure to give me a call or send me an email. I’d love to help you find homes in Katy that match your criteria as well as price range.

Filed under: Economy/Market, Katy Family Homes, Lenders