Mortgage Rates improved slightly this week as the price of mortgage-backed securities recovers from the Iran conflict. Rates are down approximately 0.625% from this time last year.
Home Prices – Cotality released their Home Price Insights which showed values nationwide were unchanged month over month. Year over year values are up 0.5%. They are forecasting a nearly 5% increase over the next 12 months.
Existing Home Sales declined 3.6% to an annualized pace of 3.98M, sales are now down 1% year over year. Inventory rose 3% to 1.36M units with an inventory of 4.1 months. The median home price rose 1.4% year over year to $408,800, a record high for March. The typical homeowner in the US accumulated $128,000 in equity over the prior 6 years. First-time homebuyers made up 32% of sales (down from 34%) and investors made up 18% (up from 15%) of sales.
Inflation – the Consumer Price Index headline figure rose 0.9% in March. This increase was primarily fueled by the rise in oil prices and the market expected it. Headline inflation is up from 2.4% to 3.3% year over year. Gas prices rose 2.1% due to the war in Iran. When you strip out food and oil prices, the core rate only rose 0.1% to 2.6% year over year.
ISM Services Index – this report showed that the index fell from 56 to 54 while prices rose to their highest levels since Aug 2022.
Mortgage Applications to purchase homes rose 1% last week and are down 7% year over year. Refinance applications declined by 3% and are down 4% year over year.