Mortgages Rates and the price of Mortgaged-Backed Securities (MBS) worsened slightly this week. Rates are down a full percent from this time last year and near the best position we have seen in 3 years.
Rents – Cotality release their single-family rent index which showed the single-family rents rose 1.1% year over year in November, the weakest increase in 15 years. Multi-family rent growth has been negative, but when combined with renewal rents (increased 3% year over year) rents are up approximately 1% on an annual basis.
Inflation – the Producer Price Index reports for Oct. and Nov. were released together after a delay due to government shutdown. The core rate (which strips out food and energy) was flat in November, up 2.9% year over year. The December Consumer Price Index showed overall inflation rose 0.31% month over month and 2.68% year over year. The core rate, which strips out food and energy rose a marginal 0.24% while year over year it is at 2.6%. Note that there is a gap in reporting during government shutdown.
Retail Sales – was released for November after a delay due to government shutdown. This report showed consumer spending was up 0.6% which was stronger than expectations.
Mortgage Applications to purchase homes increased 16% last week and are up 13% year over year. Refinance applications increased 40% last week and are up 128% year over year.