Inside Lending | Market Snapshot for the Week of June 02, 2025

June 2, 2025/
    QUOTE OF THE WEEK
“The confidence I now have is rooted in the discovery that who I am is okay.”—Dudley Moore, English actor, comedian, musician, and composer
  NATIONAL MARKET UPDATE
  The Mortgage Bankers Association reported purchase mortgage applications up compared to the week before, with that measure of buyer activity a solid 18% higher than the same week a year ago. Pending Home Sales, an index of signed contracts on existing homes, fell 6.3% in April, but with inventory at five-year highs, the National Association of Realtors says buyers “are in a better position to negotiate more favorable terms.” The closely followed Case-Shiller Home Price Index disclosed, “home price growth continued to decelerate on an annual basis in March,” down 0.6% from February, while FHFA home price growth also dipped for the month.
  REVIEW OF LAST WEEK
  TARIFF TEMPERATURE COOLS… The holiday-shortened week opened with news the President deferred the 50% tariff on the EU until July 9 to allow time for a deal. This boosted the major indexes enough to post gains for the week. But the road to those gains was choppy, tripped up by April durable goods orders showing a big drop-off in business spending, while the second estimate for Q1 GDP delivered a downward revision for consumer spending. Yet Consumer Confidence made a huge jump in May after five straight months of decline, and PCE Price inflation, the Fed’s favorite read, dropped to 2.1% in April, with core PCE, excluding volatile food and energy prices, at 2.5%. The week ended with the Dow UP 1.6%, to 42,270; the S&P 500 UP 1.9%, to 5,912; and the Nasdaq UP 2,0%, to 19.114. Bond prices also headed north overall, the 30-Year UMBS 5.5% UP 0.19, to 98.27. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate edged up a tiny bit, but remains below a year ago. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.     DID YOU KNOW… The price gap between new and existing homes has narrowed to a $14,600 average in Q1 2025, from $64,000 in Q4 2022. And when factoring in buyer incentives from builders, the gap can disappear.
  THIS WEEK’S FORECAST
  CONSTRUCTION SPENDING, MANUFACTURING, SERVICES, JOBS… April Construction Spending is expected grow overall, and we’ll focus on the residential part. Analysts predict the May ISM Manufacturing Index will report that sector of the economy still in contraction territory, while the ISM Services Index will show that far larger sector expanding at a greater rate. Economists forecast a moderate gain in new Nonfarm Payrolls for May, with Average Hourly Earnings up, and the Unemployment Rate holding.
  FEDERAL RESERVE WATCH
  Forecasting Federal Reserve policy changes in coming months. Wall Street sees the Fed holding rates where they are for the summer, then making the first cut in the fall. Note: In the lower chart, the 4.6% probability of change is a 95.4% probability the rate will stay the same. Current rate is 4.25%-4.50%. AFTER FOMC MEETING ON: CONSENSUS Jun 18 4.25%-4.50% Jul 30 4.25%-4.50% Sep 17 4.00%-4.25%   Probability of change from current policy: AFTER FOMC MEETING ON: CONSENSUS Jun 18   4.6% Jul 30  26.2% Sep 17  74.8%
  BUSINESS TIP OF THE WEEK
Write down clear goals for your business. Then break them down into the actionable steps it will take to achieve them—all the activities that drive your pipeline, from finding leads to closing deals. Above all, keep tracking your progress.
The Jim Passi Team at Citywide Home Loans proudly serves Illinois, Wisconsin, Michigan, Indiana, Georgia and Flordia. If you are looking to buy a home or refinance, we have you covered. Apply Now to get started.
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Jim Passi - Citiwide Home Loans

Jim Passi
Regional Manager
NMLS# 158000

1121 E. Main Street, Suite 121
St. Charles, IL 60174
Mobile: 847-899-1813
Email: jim.passi@alamedamortgage.com

Email Me

This testimony is from my

This testimony is from my experience being a first-time home buyer going through the process of purchasing a home with Jim Passi from City Wide home loans. Let me just start off by saying how reliable, courteous, genuine, informational and hardworking Jim Passi is. Jim is not like a lot of other loan officers. My house I purchased for under 160 grand, not a huge real estate deal. From experience with other loan officers they don’t want to deal with a smaller purchase or work on a loan that might be difficult. With our credit score being low and work history not at expectations I was almost positive I would have to wait a year or maybe two years before being approved and close on a house. I definitely had doubts that I would be a home owner, Jim worked hard and stayed in contact with us updating us almost every day of the process, even during evening hours and weekends during the stressful underwriting process. Communication is key and I give Jim a 5-star rating with that. I consider myself an average blue-collar hard-working guy that has experienced hardships during life. Jim was never turned away by the hardships, he was understanding of them and I feel like it made him work even harder to make this process a success.

I just successfully closed on a house with my fiancé. Jim did what I thought was impossible. Again, with our credit score being under 600 and spotty work history it was a difficult process that became a success with a lot of hard work. Jim also got me the best interest rate that was available. He was constantly checking the market and keeping me informed on what was available. He wanted me to take my time and make sure what rate was in our best interest. Jim has a cretin genuine care for his clients and speaking with him so much during this process I know he truly cares and wants to help people. Even after we closed Jim called and congratulated us with excitement. Jim made a dream come true for us that I was sure we would have to wait for. I’m just going to say if he made my dream come true with all the problems I had he can make a lot of others come true for any one in a similar situation. Jim Passi is highly recommended.

Tim A.