April 2022 Case-Shiller Results & Forecast: Putting on the Brakes
Earlier this spring, with inventory just beginning to sprout up from its historic low, demand for homes began to slip amid rising prices and mortgage rates, slightly edging April home price growth down from the previous record to 20.4%.
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.
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.
Mortgage Rates Continue Past 6.00%
On the heels of a much higher than expected increase in consumer prices the week prior, The Federal Reserve took strong action and increased their target for the Fed Funds Rate by 0.75%.
May Housing Starts: Bottleneck of Homes Finding its Way to Market Amid Affordability Woes
With a very competitive housing market this spring, builders continued to keep their pace of housing starts above levels not seen in the decade prior to 2020.
Mortgage Rates Shoot Higher on Inflation Report
Rates were gradually increasing throughout the week, then shot higher on Friday with the Consumer Price Index release. The CPI report showed increasing inflation in May, rising from 8.3% in April to 8.6%, higher than market expectations.
Mortgage Rates Increase as Labor Markets Remain Tight
Mortgage rates increased last week after three weeks of declines. Payroll and unemployment data showed labor markets remain extremely tight. Manufacturing and services activity data were strong, but delivery delays suggested continued supply chain issues.
Housing Market Hot but Not a Bubble, Economists Say
Although home prices continue to break growth records, a panel of housing experts and economists surveyed by Zillow® does not believe the market is in a bubble. The latest Zillow Home Price Expectations survey polled more than 100 experts from academia, government and the private sector to gather their opinions on the state of the housing market and future growth, inflation forecasts and recession risks.
Mortgage Rates Continue Decline as Fed Attempt to Tame Inflation
Mortgage rates continued to decline last week. Expectations for how the Federal Reserve will attempt to tame inflation while avoiding a recession are being priced into mortgage rates today.
March 2022 Case-Shiller Results & Forecast: Despite Rising Costs, Demand Stays Strong
Demand for homes has stubbornly kept ahead of supply this spring, even in the face of rapidly rising costs. This imbalance between supply and demand for homes this spring has been the key driver in home price growth that continues to set records month after month.
