Happy Friday, Brian Manning here for the weekly update. Let’s get right to it. All kinds of stuff to talk about this week super excited to do this update. So beginning of the week, Tuesday, We have some feedback from the European Union and Mario Draghi saying that they really need and want more quantitative easing and the European economy, European economy not doing so great. So here’s one thing to know about. The EU what’s incredible is in Germany, if you invest in a 10 year Treasury right now, or a 10 year bond, the rate of return on that right now is negative point three 2%.

That means if you invest your money is 10 year Treasury or their 10 year bond, that you have to pay them point three, two of a percent, just for your money to be invested there. So clearly, negative rates are still not working that well form they need more stimulus in our economy, and Mario, Mario Draghi saying, Come on, bring it on, we need some more For uS Wednesday, Thursday is we had a Fed meeting. So started on Wednesday, wrapped up Thursday.

And as with every fed meeting, now, Jerome powers a press conference, Lots of news about this in the media. So The Fed did leave rates unchanged, They also change their stance on the outlook for the US economy, they give us some feedback on inflation, staying tame, and even though they didn’t lower rates, the comments of the Federal Reserve made were extremely impactful to the bond markets and very impactful for mortgage rates as well. So I would say it’s likely that we will potentially see a rate cut coming up here in July, because we also predict that we’re going to go into a recession and 2020. Keep in mind, when you have a rate cut through the Federal Reserve, it typically does take six to nine months for that rate cut to trickle its way through the system, and actually have an impact on the US Economy. So are they a little late,

I don’t know we’ll have to wait and see. But It’s possible. They’re a little bit late to the game and their rate cut as well, just based on the predictions of the US economy going into recession, so we’ll have to wait and see. Today, we got existing home sales. So existing home sales for the month of May, we’re up 2.5% which is really awesome to see expectations where the existing home sales will be at 1.3%. Also, existing home sales for the month of April revised slightly higher as well. So really good to see existing home sales increase. This is primarily people that were shopping for homes and the month of March and April, kinda were expected was the beginning either will be a little bit quiet a little bit soft, spring looked really robust with home buyers in the marketplace. And now we’re seeing the benefits here and existing home sales. First time homebuyers first time homebuyers stayed unchanged at 32% 32% of all purchase transactions are first time homebuyers.

So, overall, yes, we’ve seen mortgage rates go down. Yes, we’re seeing a very favorable interest rate environment. People that are buying houses right now are reaping the benefits of low interest rates, you’re doing a ton of refinances, whether you’re taking out cash to pay off credit card debt, do home remodel, whatever it is. So mortgage rates are very appealing right now. I would say our expectation is that the general trajectory of rates over the next year or so are going to continue this downward cycle you know, they kind of go up and down, up and down, up and down. But their trajectory is going to be a downward trend of mortgage rates.\

So really excited to see this and really good. I’m around all weekend. If you have any questions let me know if you have any pre approvals you need done. Any buyers you want me to talk to give me a shout. I’d love to help you anytime I can. Happy Friday. Have a great day.





Brian Manning is a licensed Loan Officer in Colorado for Guild Mortgage Company; Regulated by the CO Division of Real Estate. Licensed in the states of Colorado and Florida, NMLS #324952. The postings on this blog don't necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. This information is not guaranteed to be accurate and shall not be construed as a guarantee of loan approval. All loans are subject to underwriter approval, and are subject to change without notice.