Shelter Six:  Deal with Mexico Puts Upward Pressure on Rates

June 10, 2019 by · Leave a Comment 

The agreement reached between the U.S. and Mexico to avert higher tariffs has eased some of the tensions in the market causing both stocks and rates to push higher early this week.

Last week ended with some bad economic news as only 75K new jobs were added in May, much lower than the forecasted 180K new jobs.

Thanks to a softening economy, low inflation, and ongoing trade disputes, prevailing sentiment now points to at least one short-term rate cut by the Fed by the end of the year.

The VA has recently given updated appraisal process guidelines clarifying that a Certificate of Eligibility has to be requested before a VA appraisal can be ordered.

The guidelines also make it clear that a VA appraiser is required to make contact and schedule an appointment within two business days of receiving the order from the lender.

The VA appraiser is also required to give the lender an opportunity to provide additional comps before completing an appraisal where the value coming in lower than Sales Price.

Rate Update

Weaker than expected employment figures and dovish comments from Federal Reserve board members last week influenced mortgage rates to the lowest levels in nearly two years.

This Week

The Consumer Price Index (CPI) will come out on Wednesday and Retail Sales on Friday.  All eyes will also be on the U.S.’s ongoing negotiations with China.