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MarketMinute | Mortgage apps rise despite higher prices and volatile rates

Jun 24

3:23

AM

Category | Markets in a Minute

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.

MarketMinute | Something Is Falling In Price

Jun 10

2:29

AM

Category | Markets in a Minute

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.

MarketMinute | Could inventory be on the rise at last?

Jun 3

2:39

AM

Category | Markets in a Minute

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%.

MarketMinute | Are Sales Finally Slowing Down?

May 27

9:06

AM

Category | Markets in a Minute

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.

MarketMinute | How Are Builders Feeling About The Market?

May 20

3:15

AM

Category | Markets in a Minute

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.