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 are flat but volatile week-over-week after surging much higher the week prior.
- The pressure for higher rates was caused by a strong jobs report, more troubling inflation data, and a higher consumer spending.
- The odds for the first rate cut by the Fed’s July meeting has now fallen below 50%.
Consumer Price Index (CPI)
- The monthly report showed inflation was much hotter than expected in March, continuing a trend we’ve seen in recent months.
- Rising energy, automobile insurance, and shelter costs were the main contributors to the increase in inflation.
- Annual inflation still remains below the peaks in 2022, but stubbornly high inflation readings will likely delay the Fed’s timing for rate cuts this year.
Home Builder Sentiment
- The most recent Home Builder Sentiment report by NAHB showed that sentiment among builders remains in positive territory.
- Internal components of the report show that buyer traffic and current sales expectations ticked higher.
- Forward looking sales expectations have softened a bit due to higher rates as some buyers remain on the fence.
- MORTGAGE RATES FLAT – Rates are relatively unchanged week-over-week but the daily changes have been volatile.
https://www.mortgagenewsdaily.com/… - RATE CUTS DELAYED – The Fed Funds Rate could stay higher for longer if inflation persists.
https://www.morningstar.com/… - WHAT HOMEBUYERS WANT – A recent study shows that a vast majority of homebuyers are looking for a home with at least one home office.
https://www.eyeonhousing.org/… - HOME PRICES KEEP CLIMBING – Higher rates are keeping a lid on housing supply and putting pressure on home price appreciation.
https://www.housingwire.com/…