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MarketMinute | How did Fed action impact mortgage rates?

Jul 29
8:45
AM
Category | Markets in a Minute

  • The Fed raised policy rates by 0.75% for the 2nd meeting in a row and signaled more increases will come this year.
  • GDP fell 0.9% in the 2nd quarter, the second straight decline and a strong recession signal. Mortgage rates generally improve during a recession.
  • Jobless claims fell for the 1st time in 4 weeks but held near the highest level since November, showing continued moderation in the labor market.

 

  • According to Case-Shiller, home price growth slowed for the 2nd straight month in May but was still 19.7% higher year over year.
  • Sales of newly built homes fell more than 8% in June from May and were 17% lower than a year ago. Inventory rose to a 9.3-month supply.
  • June’s pending home sales fell 20% year over year and 8.6% from May. This is the slowest pace since September 2011, but a rebound is expected.

 
 

 

 

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MarketMinute | The Fed May Raise Policy Rates By How Much?

Jul 15
5:29
AM
Category | Markets in a Minute

  • Inflation rose 9.1% in June, even more than the expected 8.8%. The increase seems to counter the narrative that inflation is peaking.
  • With inflation still increasing, there is talk that the Fed may raise policy rates a historic 1 percent at their July meeting.
  • The labor market remains strong despite recession concerns. Payrolls increased 372K in June, and wages rose 5.1% from a year ago.

  • Demand for mortgages declined for the 2nd week, led by a dip in purchase apps, which fell 4% from the previous week.
  • According to the Mortgage Bankers Association, the average purchase loan amount fell to $415K last week, down from a $460K high in March.
  • NAR's 2022 Member Profile showed that despite competition and low inventory, members’ median income rose $11K to $54,300 last year.

 

 

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MarketMinute | Which front door color can add value to a home?

Jul 8
2:51
AM
Category | Markets in a Minute

  • Minutes from the Fed's June meeting showed it remains committed to bringing down inflation and will raise rates at the July meeting.
  • Jobless claims rose unexpectedly last week amid growing signs that demand for labor is cooling. Layoffs surged to a 16-month high in June.
  • It's a big week for jobs data, but investors will be missing the important ADP data report, as ADP is revamping it this summer.

  • The average cost for materials to build a single-family home jumped 42% from 2018 to 2021, adding thousands to the price of a new home.
  • A Zillow study found that a black front door is associated with higher offer prices, while pale pink could negatively impact value.
  • High prices driven by over-bidding and low inventory are being tempered as some sellers are now rolling back asking prices.

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MarketMinute | Housing and Finance Report

Jul 1
2:18
AM
Category | Markets in a Minute

  • The Fed's preferred inflation gauge rose 4.7% in May from a year ago, slightly less than expected but still stubbornly high.
  • Factory orders for durable goods rose more than expected in May, suggesting business investment remains firm despite economic concerns.
  • Fed Chair Powell insisted this week that the Fed is not deliberately trying to cause a recession and that the economy is on solid footing.

 

  • Despite gloomy headlines and higher mortgage rates, new home sales unexpectedly rose in May and reversed a 4-month slide.
  • Year-over-year home prices rose 20.4% in April, slightly less than March and the first deceleration since November.
  • Pending home sales rose slightly in May, up 0.7% compared with April. That broke a six-month streak of declining demand.

 

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MarketMinute | Mortgage apps rise despite higher prices and volatile rates

Jun 24
3:24
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.

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