Welcome back to KPA Wealth. Today we dive into the Fed’s proposed capital rule changes and what they mean for lending and mortgage rates. We break down stronger-than-expected durable goods data, mixed signals in the labor market, and an unexpected rebound in home sales.

Also Today: On the innovation front, we highlight a powerful tool for turning PDFs into instant how-to videos and explore Gilead Sciences’ FDA-approved HIV vaccine—offering both bullish and bearish takes for investors. We then finish it off with today’s improved interest rates!

• This Week’s Economic Pulse: Fed Moves, Jobless Claims Drop, and Durable Goods Soar

• Ditch the Docs—Create Quick How-To Videos from PDFs

•  The First and Only HIV Vaccine - Gilead Sciences Inc. - Huge Investment Potential

• Today’s Mortgage Rates

This Week’s Economic Pulse: Fed Moves, Jobless Claims Drop, and Durable Goods Soar

TLDR – What You Need to Know at a Glance:

• Fed Policy Shift? A proposed rollback on capital reserve requirements could boost lending and drive mortgage rates lower.

• Durable Goods Surge: Orders jumped 16.4% in May, far outpacing forecasts—signaling strong business investment.

• Jobless Claims Dip: Initial claims fell to 236,000, but more people are staying on benefits longer.

• Home Sales Rise: Pending sales climbed 1.8%, defying predictions of a decline.

• GDP Revised Down: Q1 GDP final reading slipped to -0.5%, while personal spending slowed—hinting at cooling inflation.

Full Breakdown:

Bank Deregulation in Focus
The Fed is proposing a major rule change to lower capital requirements from 5% to as low as 3.5%. If passed, this could unlock billions in lending and ease upward pressure on mortgage rates—good news for borrowers and housing demand.

Durable Goods Orders Crushed Expectations
Businesses are spending. Durable Goods Orders rose 16.4% in May (vs. 8.5% expected). Core orders (ex-transportation) climbed 1.7%, while shipments—key for GDP—were up 0.5%.

Labor Market Mixed Signals
Initial jobless claims dropped to 236,000. But with continuing claims rising to 1.974 million, it’s clear many are still struggling to re-enter the workforce.

Housing Market Still Kicking
Pending home sales rebounded with a 1.8% rise in May. That’s a strong beat over the 0.5% decline economists expected, showing surprising resilience in real estate.

GDP Slips Again
The final Q1 GDP figure came in at -0.5%, a bit weaker than previously estimated. Consumer spending slowed to 0.5%, a sign that inflationary pressures may be cooling.

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The First and Only HIV Vaccine - Gilead Sciences Inc. - Huge Investment Potential

Gilead Sciences has taken a landmark step with the FDA approval of Yeztugo (lenacapavir), the first and only twice-yearly injectable HIV prevention treatment. This breakthrough positions Gilead at the forefront of a $3B+ global PrEP market, potentially expanding the addressable market by increasing adherence and reducing stigma barriers. Clinical trials demonstrated a ≥99.9% prevention rate, reinforcing Yeztugo’s potential to revolutionize HIV prevention.

Bullish Outlook:
With the CDC estimating over 1.2 million people eligible for PrEP in the U.S. alone—and only 36% currently using it—analysts project Yeztugo could generate over $1.5B in annual U.S. revenue by 2028, with global sales adding significantly more as international regulatory approvals proceed. The long-acting format is expected to enhance uptake across underserved populations and boost patient retention.

Bearish Outlook:
Investors should weigh risks including the challenge of expanding access among uninsured populations, the potential for drug resistance with incorrect usage, and pricing concerns from payers. Additionally, broader market competition and slow global regulatory timelines could temper initial adoption rates.

🏠 Today’s Mortgage Rates

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Check out our Top 30 AI Tools for Real Estate, Finance, and Investment

Kyle Allgair
CEO of KPA Wealth
📞 (279) 977-8149 | ✉️ [email protected]
🌐 KPAhomeloans.com

Kyle Allgair is the CEO of KPA Wealth, and is continuously helping clients build wealth through real estate and strategic financial planning. Contact him for personalized advice on achieving your financial goals.