Mortgage Market Update (6/3/24)

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.
  1. ERASING LAST WEEK’S SPIKE – Lower inflation and weaker manufacturing data helped rates return back to where they were about a week ago.…
  2. MOST HOMES FOR SALE SINCE JULY 2020 – Recent data shows that active inventory and new listings are up significantly year-over-year.…
  3. TURNING CAUTIOUS ON SPENDING – Consumers and businesses are slowing down on the rate of purchases made according to banking data.…
  4. CFPB REVIEWING JUNK FEES – The Consumer Financial Protection Bureau (CFPB) is assessing how “junk fees” directly impact the health of consumers.…

Get Started in Less Than 10 Minutes

Get pre-approved with our online mortgage application. It’s simple, fast & secure!