Summer 2016 update

viral-vicHello Friends,

I am back from a much needed two weeks of vacation in Europe and am back just in time for the aftermath of Brexit. Attached is this week’s newsletter recapping last week and showing this coming week’s economic calendar. The bond yield has fallen significantly on the 10 Year Treasury due to last Thursday’s UK referendum and ensuing Brexit from the EU. Last Friday, the 10 Year Treasury yield fell to almost 1.5% and today we are seeing it as low as 1.47% in early trading. This should indicate a drop in mortgage rates but in many cases, last Friday we did not see lenders pass on the drop to us and to consumers. Maybe this was due to fear of volatility and a knee jerk reaction in the markets to Brexit. Lenders may be waiting to see what happens today but it looks like more of the same so far, which should bode well for lower mortgage rates today and for the near future. Brexit may cause the Fed to continue pausing on increasing their target rate and the futures for July and September rate hikes are currently at 0%. Overall, the futures on a Fed rate hike this year point to no rate hike, with the situation in the EU taking center stage. If we see other EU nations start to follow suit, it could be a while before the Fed starts hiking rates. This does not bode well for the current home purchasing madness with too many buyers still in the market with not enough inventory available. Now is a great time to refinance for cash out to complete home improvement projects, debt consolidation, and to purchase additional real estate while rates are low and prices are high enough to access equity in your current property or properties. Feel free to contact me for a free mortgage consultation.

Thanks,

Viral (Vic) Joshi

Loan Consultant/Branch Manager

C2 Financial Corporation

510.655.2868 Direct

510.853.2407 Cell

510.291.2824 eFax

viral@vicjoshi.com

www.vicjoshi.com

BRE# 01242935

NMLS# 244388