Weekly Mortgage Update - Newsletter

In The News Recap

📈 Inflation & Rates Pulse (June 5–12, 2025)

Headline CPI & Core
May’s Consumer Price Index rose just 0.1% MoM and 2.4% YoY, slightly cooler than April—driven largely by shelter and food, while energy prices declined (bls.gov). Core CPI (ex‑food/energy) was flat +0.1% MoM, slowing from April’s +0.2%, surprising on the soft side .

What It Means
Markets and Wall Street took it as a green light for policy stability . The Fed seems content holding rates steady into September, while tariff mandates hang in the balance (reuters.com).

PPI on Deck
PPI (Producer Price Index) for May is due June 12. Expectations hover around +0.2–0.3% MoM and +2.5–3.0% YoY. This S&P Global alert frames it as a key indicator for wholesale inflation and Fed policy signals .

🏠 Mortgage Market Update

Rates near 7%
Freddie Mac reports the 30‑year fixed mortgage rate edged down from 6.89% to 6.85%—a small improvement, but still very high and dampening purchase activity (wsj.com). The 15‑year sits around 5.99% (apnews.com).

Mixed Signals
Bankrate’s poll (June 5–11) shows 56% anticipate slight declines, 44% expect steadiness—but none foresee increases (bankrate.com). Experts urge LOs to “lock now” amid late-week volatility (bankrate.com).

Activity Bump
Mortgage applications climbed 12.5% in the week through June 6 after a dip—suggesting some urgency entering summer (tradingeconomics.com).

🏦 Policy News & Trade Watch

Fannie/Freddie Debate
President Trump is reviving proposals to privatize Fannie Mae and Freddie Mac. Economists caution this could add up to 1 percentage point to mortgage rates initially without clear secondary-market backing (marketwatch.com).

Tariffs & Economy
Latest trade data shows tariffs haven’t yet hit inflation hard—likely due to pre‑tariff inventory stocks—but analysts warn effects may accelerate through June/July (axios.com).

✍️ Final Take: What Agents Should Watch For (June 13–19)

🏠 Mortgage Market Outlook:

Mortgage rates are still hovering around 6.85%, but signs point to slight downward movement if inflation data comes in lower than expected.
A few lenders are already offering incentives or pricing improvements in anticipation, especially on VA and USDA loans.
Weekly mortgage application activity recently jumped—showing that motivated buyers are still out there, especially when rates improve even slightly.

🔑 Why This Matters to You:

Price-sensitive buyers may become more active next week, especially if rate pressure eases even a little.
Encourage pre-approvals now—before Tuesday’s inflation report and Thursday’s wholesale data hit the headlines. A sudden shift in rates could either motivate buyers—or catch them off guard.
Stay ready to act. If we see improved affordability in the data, it could spark a mid-June bump in buyer demand.

Let’s keep your pipeline moving strong into summer. I’m here to help you and your clients stay ahead of the market—reach out anytime for quick rate scenarios or customized approval letters on the fly!

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Here’s a polished “Loan Product of the Week” segment that highlights condominium lending for your real estate agent partners — written in a clear, professional tone:

🏢 Loan Product of the Week: Condo Lending 101

This week, we’re spotlighting condominium financing—an often misunderstood area of lending that can make or break a deal.

Whether your client is buying their first condo or selling in a building with unique rules, it’s important to know the difference between warrantable and non-warrantable condos:

✅ Warrantable Condominiums

These meet Fannie Mae/Freddie Mac guidelines. Key features:

No single entity owns more than 2 units in smaller projects (or 20% in larger ones)
At least 50% of units are owner-occupied
No ongoing litigation involving safety or structural issues
Adequate reserves and HOA financial health

These are typically easier to finance with conventional loans—and we offer competitive options.

⚠️ Non-Warrantable Condominiums

These fall outside conventional guidelines—often due to:

Litigation
Excessive investor ownership
Incomplete construction or phasing
Inadequate reserves or financial documentation

Good news: At Home Mortgage Advisors, we lend on both warrantable and non-warrantable condos. We have flexible programs to help your clients close deals even when a property doesn’t check all the conventional boxes.

🟡 FHA Condo Lending & Spot Approval

Did you know FHA allows spot approvals for individual condo units—even if the complex isn’t fully FHA-approved?

To move forward, we’ll need:

✅ HUD Form 9991
✅ Master Insurance Declaration
✅ Current Budget & Balance Sheet (dated within the last 60 days)

This makes FHA financing possible for buyers who need low down payment options—even in non-FHA-approved complexes.

💡 Agent Tip: If you're listing or showing a condo, send me the HOA contact upfront—I’ll help vet the building’s status and walk your client through the best loan path.

Let’s make condos easy. Reach out anytime for a review or to strategize your next deal.

Crystal Johnson NMLS 89381

Home Mortgage Advisors

Licensed CO, WY, FL

Navigating Mortgages with Expertise, Wherever Life Takes You!!!

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