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Mortgage Rates increased again this week as the price of Mortgage Backed Securities continued their downward march. Rates are up approximately 2.75% from this time last year.
Jobs – the BLS jobs Report showed that 315,000 jobs were created in August. The unemployment rate increased from 3.5% to 3.7% as the number of jobs created was less than the number of new folks entering the workforce. Weekly earnings, which provides a good snapshot of actual take home income, stayed flat month over month and are up 4.6% year over year.
Home Values – increased by 0.6% (down from 1.6% in May) in the month of June and are up 18% year over year. Home values are still appreciating quite rapidly. The National index increased 10.6% in the first 6 months of 2022 and in the last 34 years there have only been 4 years that witnessed that much appreciation in the entire 12 months. While appreciation is cooling home values are still increasing.
Rents increased 0.5% in August which is half of the increase in July. Rents are up 10% year over year and 7.2% year to date.
Mortgage Applications to purchase homes fell 1.8% last week and are down 23% year over year. Refinances declined by 8% and are down 83% year over year. Refinances now account for 30% of transactions.