Mortgage Rates and the price of Mortgaged-Backed Securities improved marginally this week. There is still optimism of a conflict resolution in Iran. rates are down approximately 0.5% from this time last year.
Inflation – the BLS released their Producer Price Index which showed that headline inflation rose 1.1%, hotter than estimates of 0.7%. Year over year producer inflation is up from 5.7% to 6.5%. The core rate, which strips food and energy, rose 0.4% last month and remains up 4.9% year over year.
Home Sales – NAR released their existing home sales report which showed that closings on existing homes in May rose by 3.2% to an annualized pace of 4.17M. Sales are now up 3.2% year over year. The median home price is up 1.3% year over year to $429,300
Mortgage Applications – to purchase homes increased by 7% last week while refinance activity increased 15%. Year over year purchases are up 4% and refinances are up 20%.