There is some big news this week. First started with First Republic Bank is sold to JPMorgan Chase Bank on Monday, May 1, 2023. First Republic was funded in 1985 and the 2nd largest U.S. bank by assets to breakdown after Washington Mutual which was also took over by JPMorgan Chase Bank. Fed increased the overnight fed funds rate another 0.25% yesterday, May 3, 2023. Weekly initial unemployment claims increased to 242,000 in the week ending April 29, 2023 which is an increase of 13,000 from the previous week.
What about mortgage rates? 30-year fixed rates hit 3 weeks lows. Bond market likes the Fed’s hike on Wednesday. That means Fed is attempting to cool the demands for goods and services, therefore, reducing the inflation numbers. Additionally, the message from this week’s meeting conveys this could be the last hike for a while which is a good signal that the Bond market was waiting on.
What happens next? Consumer Price Index (CPI) data will come out next week that can potentially move the mortgage rates even lower. It’s a great time to review all the mortgage payments (especially if you have home equity line of credit), revolving debts and installments. Let’s save you money next month!!
