Mortgage Rates Drop on Slowing Economic Activity
Mortgage rates dropped significantly last week. The Federal Reserve increased the federal funds target rate by 75 basis points at the July meeting, in line with market expectations.
Market Trends
June New Home Sales: Builder Slow Down Meets Declining Sales
A June decline in new home sales was to be expected given recent market shifts and reported slump in homebuilder sentiment, but the reported value of 590,000 new home sales in June was way under consensus.
Mortgage Rates Decline Despite High Inflation Indicators
Mortgage rates declined last week, even with very high inflation indicators. In economic data released last week, both consumer and producer prices showed higher than anticipated increases. But investors continue to price in a potential recession in 2023, which may force the Federal Reserve to begin lowering the federal funds target sometime next year.
June Existing Home Sales: Existing Home Sales Slip Further as Market Rebalances
As mortgage rates stay elevated and inflation burns on, affordability is still top of mind for many would-be home buyers, keeping demand on the sidelines and constricting home sales further than expectations suggested.
Mortgage Rates Move Up on Strong Economic Data
Mortgage rates reversed their recent trend, moving up last week. Economic data releases last week were stronger than expected for both job growth and demand for services.
Mortgage Rates Drop as Investors Eye Potential Recession
Mortgage rates declined for the second week in a row. Investors are pricing in more risk of economic slowdown and a potential recession, which may slow the pace of future interest rate hikes at the Federal Reserve.
Mortgage Rates Drop Back Below 6.00%
Mortgage rates declined last week, dropping back below 6.00. Both equity and fixed income markets were up during the week, with light economic data releases.
Impacts of Rising Mortgage Rates: A Conversation With Senior Economist Matthew Speakman
Matthew Speakman is a senior economist at Zillow. He shared his thoughts about what is driving the recent spike in mortgage rates, how that will impact the broader housing market, and where the market will go from here.
May New Home Sales: Buyers Resilience Bumps Up New Sales
Newly constructed home sales ticked up from revised April numbers in May, beating the consensus.
