Blog posted On June 08, 2020
This week, the Federal Open Market Committee (FOMC) will meet on Tuesday and Wednesday for its semiannual monetary policy meeting. After two emergency rate cuts in March, the Fed is not expected to move interest rates at this month’s meeting. The only significant housing report will be the weekly mortgage application survey. In employment news, the Labor Department’s Job Openings and Labor Turnover Survey comes out on Tuesday.
The FOMC will meet on Tuesday and Wednesday of this week to review the current state of the economy. Many businesses have been forced to close due to the coronavirus pandemic and the unemployment rate has exceeded 20% as a result. Consumer spending is also down with many Americans confined to their homes.
The JOLTS report reviews job openings, hirings, and quits. The data lags by one month but is starting to reveal the impact of the coronavirus pandemic. In March, the report showed 6.2 million job openings down from over 7 million in February. The hiring rate also declined to 5.2 million. The separations rate jumped to 14.5 million, one of the highest recorded figures, due to layoffs and furloughs related to the pandemic.
For the week ending 5/29, new purchase mortgage application submissions climbed 5.0% and refinance mortgage application submissions declined 9.0% for a composite decrease of 3.9%. Housing professionals are expecting a later busy season this year after the stalled spring season. Home buyer demand remains strong and buyers are feeling more comfortable returning to the housing market.
Low mortgage rates are likely to continue driving the mortgage market this summer. If you’re looking to buy a new home, get preapproved for your mortgage before you start shopping. Mortgage preapproval shows the seller you are serious and have already started the financing process. If you have any questions about preapproval, let us know.