Market Minute - Economy and Housing News - Erin Carvelli

  • 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.

  • 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. 

Market Minute Report - Mortgage News