Mortgage Rates Rise on Robust Economic Activity
Mortgage rates moved higher again last week. Fed Chair Powell noted late in the prior week that the Fed is committed to containing inflation, which will likely result in some economic pain.
Market Trends
Sales Up, Size Down for $1 Million Homes
The typical million-dollar home has shrunk in size across nearly all major metropolitan areas
Today’s ARM Borrowers Have Higher Incomes, Larger Down Payments
Adjustable-rate mortgages rose in popularity in the first half of 2022, bringing the share of adjustable-rate mortgage applications to the highest it’s been in 15 years
July New Home Sales: The New Construction Cool Down Continues
As the tides of rising housing costs sweep buyers off the shore of the for-sale market, new home sales have been rapidly descending.
July Existing Home Sales: Discouraged Buyers Lead to Continued Decline in Sales
Discouraged buyers pulling back from the for-sale market, coupled with the ongoing inventory crunch, has caused existing home sales to plummet in July to the lowest rate in the last two years.
Mortgage Rates Decline After Inflation Data Below Expectations
Mortgage rates declined slightly last week.Inflation data released last week came in below market expectations, resulting in interest rate declines and a rally in equity markets. Investors viewed this data as an indication that the Federal Reserve may not have to increase short term rates as much as previously estimated. While both consumer and producer prices showed increases in July, the rate of increase slowed substantially.
Demand for Lowest-Priced Homes is Strongest as Market Rebalances
Inventory, sales and price cut trends show home buyer demand has cooled across the board, but competition is strongest for the lowest-priced homes in each market, reversing a pandemic trend.
Mortgage Rates Increase as Markets Respond to Conflicting Economic Data
Mortgage rates increased last week, reversing direction after several weeks of declines. Comments from Federal Reserve members early in the week started moving interest rates higher, as they messaged that there is still much work to be done in taming inflation.
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.
