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 moved higher in the early half of last week, but have since moved back down.
- April’s Personal Consumption Expenditures (PCE) report was released last Friday, which showed inflation slightly below expectations and helped rates move lower.
- Today’s weaker manufacturing data further supported the decrease in rates and we essentially back to where we were for rates about a week ago.
Personal Consumptions Expenditure
- The Fed’s favored inflation measure, Core PCE, rose 0.2% from March to April, coming in slightly below estimates.
- On an annual basis, Core PCE remained at 2.8% for the 12 months ending in April.
- While this is well below 2022’s 5.6% peak, progress toward the Fed’s 2% inflation target remains stalled.
All-Time High for Home Values
- Two of the most notable home price indices, Case-Shiller and FHFA, show that home values continue to rise on a year-over-year basis in their most recent reports for the end of March 2024.
- Case-Shiller reports that home prices rose 6.5% year-over-year while FHFA reported a year-over-year gain of 6.6%.
- Strong demand and tight supply will continue to push home values higher and help homeowners build wealth through equity.
- ERASING LAST WEEK’S SPIKE – Lower inflation and weaker manufacturing data helped rates return back to where they were about a week ago.
https://www.mortgagenewsdaily.com/… - MOST HOMES FOR SALE SINCE JULY 2020 – Recent data shows that active inventory and new listings are up significantly year-over-year.
https://www.calculatedriskblog.com/… - TURNING CAUTIOUS ON SPENDING – Consumers and businesses are slowing down on the rate of purchases made according to banking data.
https://www.cnbc.com/… - CFPB REVIEWING JUNK FEES – The Consumer Financial Protection Bureau (CFPB) is assessing how “junk fees” directly impact the health of consumers.
https://www.housingwire.com/…