The Mortgage Porter Weekly | Iran Ceasefire, Fed Rate Decision, HELOC Mortgages

Last Week in Review

The United States and Iran signed an agreement to extend their ceasefire and reopen the Strait of Hormuz, easing concerns about energy supplies and global trade. The Federal Reserve also held rates steady in Kevin Warsh’s first meeting as Fed Chair, while reaffirming its commitment to fighting inflation.

Housing data was mixed: starts fell 15.4% in May to their lowest level in years, while pending home sales rose 3.8%, a fourth straight monthly gain and nearly 5% above year-ago levels. Retail sales also beat expectations, up 0.9%.

Optimal Blue Rate Index

As of last Thursday, June 18th, the Optimal Blue index put the average 30 year fixed rate at 6.454%, a slight improvement from the prior week.

This index reflects about 35% of mortgage transactions nationwide. It is not a rate quote — you cannot lock in last week’s rate today, and your credit score, loan to value, and other factors will impact your actual rate.

Economic Calendar

Tuesday: ADP Employment, Housing Starts
Wednesday: New Home Sales
Thursday: Jobless Claims, Personal Consumption Expenditures (PCE), GDP
Friday: Consumer Sentiment
Next FOMC Meeting: July 28–29, 2026

That said, the situation in Iran and oil prices will likely still outweigh this week’s scheduled data.

Weekly Spotlight: A Mortgage That Works as Hard as You Do

This week’s spotlight revisits one of my favorite mortgage programs — one that combines your first lien mortgage with a HELOC and a sweep checking account, re-amortizing nightly so your daily balance works to pay down principal faster than a traditional loan. The rate is tied to 30 day SOFR. There’s an interest-only draw period of 10 years for owner-occupied homes (5 years for investment properties), after which the loan converts to a 20 year amortized mortgage.

If you like having more control over your home equity, let’s talk about whether this is a good fit for you.

Don’t forget to vote for The Mortgage Porter in the Seattle Times Best of the Pacific Northwest, Home Mortgage category under Finance!

Have questions about your specific scenario? Whether you’re buying, refinancing, or exploring your options, I’d love to hear from you.  Let’s talk!