Step Inside The Market - Week 30, 2023

StepInside Weekly 7/27

☀️Hello everyone,

👀 In this week’s recap, we will focus on the current trends within the residential real estate market, some updates on housing prices ,and some good news about borrower delinquency rates!

😑Over the last week, the average contract interest rate for a 30 year fixed mortgage remained unchanged an still sits around 6.78%.

• However, we should keep a close eye on this in the coming week as the Fed raised rates by .25% to the highest levels in 22 years yesterday!

• Additionally, GDP numbers came in above expectations, which could signal that the economy is not cooling off in the way the Fed would like to see, meaning a potential for further rate increases in September.

📉Even though rates remained unchanged, mortgage applications fell by 1.8% overall, with Purchase applications down 3% and Refinance applications essentially flat week-over-week.

📈S&P Case-Schiller released its latest data showing that home prices rose by 0.7% month-over-month, but due to the regional aspect of the increases, its 10-city composite fell by 1% year-over year and the 20-city composite fell by 1.7% year-over-year.

• We are again seeing housing prices fall in the West and Southwest while housing prices are increasing, albeit at a slower clip, in the Midwest and along the Eastern Seaboard.

• Therefore, depending on where you practice, you may have clients in a better situation to buy than in 2022!

❤ In some positive news to wrap up our weekly update, CoreLogic’s latest data is showing that US Mortgage Delinquencies dropped to an all-time low in May. While this is likely due to the fact that many homeowners having historically low interest rates, it is promising for the overall mortgage market that we are not seeing a repeat of 2008!

👏 Thank you for reading! Comment your thoughts below. We would love to hear from you!