Blog


  • In testimony to Congress this week, Fed Chair Powell acknowledged that steep Fed interest rate hikes could tip the US economy into recession.
  • As fears of a coming recession from Fed rate hikes replace fears of inflation in investors' minds, mortgage rates are able to improve.
  • Unemployment claims last week fell to 227K as the labor market continues to show strength despite Fed rate hikes and recession concerns.

  • Mortgage rates have experienced tremendous volatility since inflation data was released June 10, but mortgage purchase applications rose 8%.
  • Existing home sales fell 3.4% in May, the 4th month of declines and the weakest reading since June 2020.
  • The median existing-home sales price topped $400K for the first time, reaching $407,600 in May, 14.8% higher than the same time last year.

 


  • The Fed is expected to raise policy rates by 0.5% next week. This move was previously forecast and is already reflected in mortgage rates.
  • Jobless claims moved to the highest level since mid-January last week, totaling 229K, despite signs of an otherwise strong labor market.
  • Credit card balances have spiked to $841 billion and hit new record levels, as consumers deal with the highest inflation in 40 years.

  • Purchase mortgage applications fell 7% for the week and were 21% lower than the same week one year ago.
  • The pace of single-family home construction has fallen across large metro suburban areas due to supply chain issues and economic conditions.
  • Despite skyrocketing to record highs since the pandemic, lumber prices have fallen 12% this week, reaching a new low for 2022.

 


  • The Fed’s preferred inflation gauge, the core PCE, rose 4.9% year over year in April, a deceleration from March and in line with estimates.
  • According to ADP, May saw the fewest jobs added since the pandemic recovery began, despite a record level of job openings.
  • Even with the hiring slowdown, demand for labor remained strong. Both new and continuing unemployment claims fell for the week.

  • According to Case-Shiller, home prices nationally were 20.6% higher in March than in March 2021, despite higher mortgage rates.
  • Realtor.com reports home listings increased for the first time since June 2019, suggesting housing supply could be improving.
  • Construction spending rose slightly in April. Single family home spending grew by 0.5%, and multi-family home spending was up 0.8%.


  • Durable goods orders placed with US factories rose in April, highlighting sustained demand for equipment and merchandise.
  • Fed minutes released Wednesday indicated officials are prepared to move ahead with multiple 50 basis points policy rate increases.
  • First-quarter GDP declined at a 1.5% annual pace, greater than the 1.3% Dow Jones estimate and the initially reported 1.4% rate.
 

  • Signed contracts for new homes dropped far more than expected in April, down 16.6% for the month and 26.9% for the year.
  • Pending home sales fell in April for a 6th straight month, as a steep climb in mortgage rates added to the challenge of low inventory.
  • Last week's purchase mortgage apps were down 12% for the week and 15% year over year, despite slight rate improvements.
 

 

 


  • Stocks continued to sell off in anticipation of an economic slowdown expected with future Fed actions, helping mortgage rates this week.
  • Retail spending increased 0.9% in April, despite inflation. This 4th straight monthly increase signals the economy is still strong.
  • Unemployment claims rose last week to 218K, the highest since January. However, continuing claims fell to the lowest level since 1969.

  • Existing home sales dropped in April to the lowest level since the start of the pandemic due to the ongoing lack of inventory.
  • Homebuilder sentiment dipped to a 2-year low in May, as declining demand and rising costs raised concerns. It is expected to bounce back.
  • Last week’s purchase mortgage applications fell 12% week to week and 15% year over year.


Showing results 1 - 5 of 220