Spring is in full swing! 🌸 The birds are chirping, the flowers are blooming, and the housing market is feeling fresh as a daisy. As we cruise through the third week of May, it’s a fantastic time to think about planting new roots or nurturing your existing home with a smart mortgage move. Whether you’re a first-time buyer with stars in your eyes ✨ or a seasoned homeowner considering a refinance, we’re here to help your financial garden grow. And speaking of things that bring a smile to your face, get ready to celebrate a day that’s all about that sweet, sweet feeling… next week, on May 21st, it’s National Strawberries and Cream Day! 🍓🍦 Join us as we savor the latest mortgage insights and help you find a deal that’s as delightful as this classic treat. Let’s make your homeownership dreams as sweet as strawberries and cream!
let’s look at the economic calendar for the week of May 19th – May 23rd, 2025. Here are some significant reports to keep an eye on:
- Existing Home Sales: This report, typically released mid-month, provides data on the number of previously owned homes, condos, and co-ops sold during the previous month. It’s a key indicator of the health of the housing market. A strong report can suggest continued demand, while a weak report might indicate a cooling market.
- New Home Sales: Released towards the end of the month, this report measures the number of newly built homes sold. It’s another important indicator for the housing sector and can reflect builder confidence and buyer demand.
- Durable Goods Orders: This report tracks orders for manufactured goods expected to last three years or more. It provides insights into business investment and manufacturing activity. Strong orders can signal economic growth.
- PMI Data (Manufacturing & Services): We’ll see updates on the Purchasing Managers’ Index for both the manufacturing and services sectors. These indexes are leading indicators of economic activity. Readings above 50 indicate expansion, while readings below 50 suggest contraction.
- University of Michigan Consumer Sentiment (Final): This will be the final reading for May, providing a comprehensive look at consumer confidence levels and inflation expectations. Changes in sentiment can influence spending and economic activity.
Potential Impact on the Mortgage Market:
- Strong Housing Data (Strong Existing and New Home Sales): This could suggest continued demand in the housing market, potentially keeping upward pressure on home prices and, indirectly, mortgage rates.
- Strong Economic Data (Strong Durable Goods Orders, Strong PMI Readings, Higher Consumer Sentiment): These indicators collectively pointing to a robust economy could reinforce the idea that the Federal Reserve will need to maintain a tighter monetary policy to control inflation, potentially leading to stable or potentially rising mortgage rates.
- Weak Economic Data (Weak Housing Data, Weak Durable Goods Orders, Weak PMI Readings, Lower Consumer Sentiment): Conversely, data suggesting a slowing economy or weakening housing market could prompt the Federal Reserve to consider a more dovish stance, potentially leading to stable or lower mortgage rates.
Keep an eye on these releases next week for a better understanding of the economic trends and their potential impact on the mortgage market!
-tom