Mortgage Rates – improved this week after Fed Chair Powell’s comments on the job market slowdown being larger than he previously believed. Mortgaged-Backed Securities are in the best position they have been since September 2024. Rates are in the same position they were this time last year.
Existing Home Sales came in slightly better than market estimates with a rise of 2% in July to a 4.01M annualized pace. Sales are up roughly 1% year over year. 1.55M units were listed for sale at the end of July, up 0.6% from June and 15.7% year over year. There is now 4.6 months of supply which is essentially a balanced or ‘normal’ market.
Rents – Cotality reported rents increased (blended rents)1.1% in June, which is normal for this time of year. Year over year single family rents were up 2.9%, a slight moderation from the previous report of 3.1%
New Construction permits fell 3% last month and continue to trend lower. The decline was constrained to multi-family permits with single-family up a modest 0.5% Single-family starts is the second lowest of the year and points to limited supply in the nearish future (this should provide pricing support).
Mortgage Applications to purchase homes were flat last week but are up 23% year over year. Refinances declined 3% after rising 23% the previous week.
Very straight forward information!