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MarketMinute | Discover Signs Of Housing Market Recovery

Jul 28

3:24

AM

Category | Markets in a Minute

Consumer confidence hit a 2-year high in July, as inflationary pressures eased and the economy continued to show resilience.

The Fed raised its policy rate this week to a 22-year high, as expected. Fed actions do not directly impact mortgage rates.

The economy picked up unexpectedly in the 2nd quarter, steering clear of a recession despite Fed rate hikes.

Housing News

The FHFA reported a 2.8% year-over-year home price increase in May. This was the 4th straight month of gains despite a jump in mortgage rates.

New home sales fell in June after 3 months of increases. The drop was attributed to tight inventory rather than lack of buyer demand.

Pending home sales rose in June for the first time since February, suggesting the housing market is recovering from recent declines.

MarketMinute | What's the deal with homeowners insurance these days?

Jul 7

5:42

AM

Category | Markets in a Minute

Manufacturing contracted for an 8th month in June, slipping to the weakest level in 3 years.

Payroll company ADP reports businesses added the most jobs in a year in June, underscoring the ongoing strength of the labor market.

The service sector expanded in June at its fastest pace in 4 months, pointing to a resilient economy.

Housing News

Mortgage applications dropped to the lowest level in a month. Purchase apps fell 5% for the week and 22% year over year.

Homeowners insurance rates are soaring. Some companies are pulling out of states with high losses from natural disasters, including CA and FL.

Pending home sales fell in May to the lowest level in 5 months. The chronic shortage of houses on the market weighed on activity.

MarketMinute | Prices, new home sales and apps are on the rise!

Jun 30

5:27

AM

Category | Markets in a Minute

Consumer confidence jumped in June, reaching its highest level since January 2022. A strong labor market and economy helped.

The 3rd and final estimate of 1st quarter GDP showed economic growth at 2.0%, up from the previous estimate of 1.3%.

Unemployment applications fell last week by the most since October 2021. Despite the drop, demand for workers has slowly eased.

Housing News

House prices rose slightly in April, up 0.7% from March, according to the FHFA. Prices rose 3.1% year over year.

New home sales surged in May, up 12%. Buyers turned to new construction due to the low inventory of existing homes for sale.

Purchase mortgage applications rose 3% for the week. Apps were 21% lower year over year due to lack of inventory rather than demand.

MarketMinute | New home construction surges dramatically!

Jun 23

5:15

AM

Category | Markets in a Minute

In his bi-annual testimony before Congress, Fed Chair Powell hammered home the message that the Fed is not done raising rates to fight inflation.

Jobless claims held steady at a 20-month high, remaining elevated for a 3rd straight week and signaling the labor market may be softening.

Consumer sentiment rose 8% last month to the highest level in 4 months, reflecting greater optimism about inflation and the economy.

Housing News

Single-family homebuilding projects surged 21% in May, the most in more than 3 decades. Permits for future construction also climbed.

Existing home sales barely moved from April to May, rising 0.2%. Sales were 20% lower than a year ago amid a critical inventory shortage.

Total mortgage application volume increased 0.5% last week. Purchase apps increased 2% for the week despite dropping 40% year over year.

MarketMinute | Can middle-income borrowers afford a home today?

Jun 16

3:31

AM

Category | Markets in a Minute

Inflation rose at a 4% rate in May, the lowest in 2 years. However, it remains stubbornly high after excluding volatile food and energy prices.

Wholesale inflation fell more than expected in May, dropping 90% year over year and falling below pre-pandemic levels.

The Fed paused hiking its policy rate for the first time in 14 months at its June meeting but signaled more hikes could be coming.

Housing News

Of roughly 1.1 million homes listed for sale in April, only 25% were affordable to households earning the national median income of $75K.

NAR reports the housing market is short more than 300K homes in price points middle-income buyers can afford, creating fierce competition.

Mortgage demand remains strong despite tight inventory. Purchase applications were up 8% for the week, though down 24% from last year.