Step Inside The Market - Week 21, 2023

StepInside Market Weekly 5/26

Happy Memorial Day Weekend!

In this week’s recap, we will focus on the current trends within the residential real estate market and a new and exciting product being offered by Rocket Mortgage! .

😨 The average 30 year fixed rate for a conforming loan, per FRED, increased to 6.57% from 6.39% over the last week, with some seeing rates as high as 7%!

⛔ We will likely continue to see uncertainty in the bond markets, including the 10 year treasury, as Congress continues negotiations around the debt ceiling, per CNN. Let’s hope they get something done soon!

💨 Mortgage applications for purchase loans decreased by 4%, while refinance applications saw a decrease of by 5% this week! Again, this was mainly driven by the increase in rates and the continuation of historically low inventory.

🚨 In some more positive news, home-builder sentiment is increasing and has pulled out of negative territory from the past year. New home listings are leaning heavily towards new builds, as 33% of the current listings are under construction. This is much higher than the average of 12.7% from 2000-2019!

😮 And in our final update, Rocket Mortgage is rolling out a 1% down home loan program called ONE+. ONE+ is available to home buyers purchasing single-family homes – including manufactured homes – whose income is equal to or less than 80% of their area median income (AMI). So if you are working with clients that meet this criteria, it may be worth having them reach out to Rocket to see how they can help!

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