Welcome to our Market Update, written by our very own Capital Market experts. This blog is designed to give you a glance into the most important market events happening this week.
Market Commentary:
Interest rates for the week of June 13th to June 19th remained flat. The Federal Reserve kept a steady hand on interest rates, maintaining them at their target range of 4.25% to 4.5%.
The central bank is calling for two rate cuts this year, but policymakers see higher inflation. They have also cut their outlook for gross domestic product.
At his press conference, Federal Reserve Chair Jerome Powell said that policymakers are “well positioned to wait” before moving further on rates. He also said that “we’re beginning to see some effects” of tariffs on inflation.
Powell says he sees no signs of the economy weakening
While speaking about the sustained strength in the labor market, Powell added that he sees no signs in the near term that the U.S. economy will weaken.
“The U.S. economy has defied all kinds of forecasts for it to weaken, really over the last three years, and it’s been remarkable to see … again and again when people think it’s going to weaken out. Eventually it will, but we don’t see signs of that now,” he said.
Fed Watch: Target rate (in bps) possibilities, according to the CMEGroup (as of 06/19/2025 – 12:00 PM EST):
Market Review: Optimal Blue’s Production Metrics:
Fed Focus
To the surprise of nobody, the Fed kept rates unchanged at today’s meeting. Powell deftly suggested that the Fed could adjust to what comes next, while simultaneously admitting it has no idea what to expect. As for the dot plots suggesting two 25bps rate cuts, ignore them. In this environment of extreme policy uncertainty, they’re meaningless. The Fed clearly feels the labor market hasn’t sufficiently buckled to warrant rate relief. –Elliot Eisenberg, Economist
News You Can Use:
· Fed Holds Interest Rates Steady After Trump Ripped Powell for Inaction
· Investors Are Selling a Record Share of Homes To Cut Their Losses—Especially in These 5 States
· Buyer-Friendly Housing Market Grows as Home Prices Hold Steady
· Mortgage Interest Rates Today: Mortgage Ticks Down to Four-Week Low Ahead of Fed Meeting
· America's Second Largest Homebuilder Sees House Prices Plunge
· Fed sees its preferred inflation gauge topping 3% this year, higher than previous forecast
· Homebuilder sentiment nears pandemic low as economic uncertainty plagues consumers
*Communication is intended for Industry Professionals only and not intended for Consumer Distribution
Interest rate and annual percentage rate(APR) are based on current market conditions as of 06/19/2025, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by HomeServices Lending, LLC. Not available in all states. Rate is as of 06/19/2025 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac’s economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac’s business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
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