Welcome to Homeseed’s Mortgage Market Update, where we dive into the latest trends, insights, and changes shaping the dynamic landscape of the housing and lending industries.
Mortgage Rate Trends & Forecasts
- Mortgage rates are lower week-over-week after the recent PCE inflation data came in as expected.
- Downward momentum on rates continued as yesterday’s ISM Services index showed a big decline in prices paid for the service sector where we are seeing most of the inflation.
- Tomorrow’s BLS Jobs Report is potentially a market mover as recent comments by Fed members show they are paying close attention to the labor market.
Personal Consumption Expenditures
- Fed’s favorite measure of inflation, Personal Consumption Expenditures, showed the headline or all-in inflation declined from 2.6% to 2.4% year-over-year.
- Annualizing the last 6-months of core readings, which the Fed says they are looking at, puts Core PCE at 2.46% and close to their 2% target.
- There are emerging signs that the consumer is coming under pressure when looking at income and spending data.
CoreLogic Home Price Insights
- Home prices were up 5.8% year-over-year in January, which is an increase from 5.5% on the previous report.
- Forecasts for February show home prices being flat and will rise by 2.6% over the next 12 months, but it is worth noting that CoreLogic has been very conservative in the past.
- Despite fewer buyers in the current market, housing demand still exceeds available inventory which is why home prices remain supported.
- RATES LOWER AHEAD OF JOBS REPORT – Recent inflation data helps mortgage rates move lower ahead of the important BLS Jobs Report.
https://www.mortgagenewsdaily.com/… - FEBRUARY LAYOFF NUMBERS – Layoff announcements in February hit their highest level for the month since the global financial crisis in 2009.
https://www.cnbc.com/… - HOME-SELLING SENTIMENT MOVES HIGHER – February data shows more consumers believe it is a good time to sell a home ahead of the spring homebuying season when compared to January.
https://www.fanniemae.com/… - CREDIT SCORES WORSEN – For the first time in a decade, the average credit score for consumers fell according to FICO.
https://www.investopedia.com/…