Even though home prices increased reached an all time high last year affordability increased significantly. A good reminder that that their are multiple factors to consider when purchasing a home and chief among them is monthly payment compared to monthly wages – not what rate or what price.
Rates increased again this week as Mortgage Backed Securities (MBS) continue their downward slide. Rates are nearing the same level on a year over year comparison, down only 1/8%
Jobs – their continues to be roughly 18M people receiving some sort of unemployment assistance. Pre-Covid this number was closer to 2M.
Fed – the notes from the Fed meeting this week showed no change – rates likely to remain at 0 (this is the Fed funds rate the overnight rate that banks lend money to eachother at) through 2023 and they will continue to purchase Mortgage Backed Securities at the same rate. They predict inflation will reach 2.4%
New Construction – permits for Single Family Construction are up 15% year over year a good sign for housing supply down the road.
Mortgage Applications – are down 2% from the previous week. Purchases are up 5% year over year and refinances are down 39%.