Mortgage Rates – the price of Mortgaged-Backed Securities and mortgage rates worsened again this week to the worst levels we have seen since July 2025. Oil inflation continues to plague mortgage rates.
Inflation – the Personal Consumption Expenditures Index showed that all-in inflation fell 0.1% during June and fell from 4.1% to 3.7% year over year. The core reading, which strips out food and energy prices, rose 0.1% last month. Year over year the core rate fell from 3.4% to 3.3%.
Rents – Apartment List released their Rent Report which showed that new rents rose 0.2% during the month, which is standard for this time of year. Rental prices are down 1.1% year over year. The vacancy rate remains slightly off its peak (7.3%) at 7.2%.
Home Values – Case-Shiller released their Home Price Index which showed that home values rose 0.6% in May but remain flat after seasonal adjustments. Year over year home values are up 1.1%, a 0.3% gain from last months’ reading.
Mortgage Applications to purchase homes fell 4% and are up 3% year over year. Refinances declined 10% last week and are down 2% year over year.
Fed – the fed met and decided to leave their fed funds rate unchanged. Three members dissented who were in favor of a 25bp hike. Fed chair Warsh emphasized that the Fed remains committed to bringing inflation back to its 2% target.
Oil Prices – are at 85.86, down $4 from the end of last week.