TODAY’S RATES & HOUSING NEWS

Mortgage Interest Rates moved lower
over the past 7 days by about .1%.
The Mortgage-Backed Security (MBS)
market trading up +27 bps.

The market was bolstered on
Wednesday with the CPI Inflation
Report showing Year over Year
Inflation dropping from 3.4% to
3.3%. This was .1% better than
expectations and caused a nice
improvement for rates on Wednesday.

Also on Wednesday, the FED kept
rates unchanged. FED Chief Powell
has acknowledged that inflation has
lowered some but still has a ways to go.

The FED members predict where they
see the Federal Funds Rate will be in
the future..
4 members believe it will remain
the same by the end of 2024.
7 members believe we will
see one .25% cut.
8 members believe we will
see two .25% cuts.

This has moved quite a bit from
the larger number of cuts predicted
earlier this year. It appears that
Mortgage Rates will continue their
trend for higher for longer.

Mortgage interest rates moved up some
from their mid-week lows on Friday
and Monday. Overall, we have a relatively
tame week for market news this week.

Below is the Green Home Loans
rate sheet today. There are a lot of
characteristics that go into a mortgage
rate – credit score, investor, loan
to value, loan amount, costs, etc.

Please call me to go over your
specific scenario so we can price
your loan out accurately.

And below are Mortgage News Daily’s
average interest rates across the country.

ZILLOW’S MAY MARKET REPORT

Overall, Zillow’s market report is showing
that home values have risen in most
areas, but the home market is softening
with an increase in inventory and stagnant
demand.  These conditions will likely lead
many areas to more buyer-friendly
conditions over the coming months.

Home Values
The value of a typical home in the U.S.
is $360,310. The typical monthly mortgage
payment, assuming 20% down, is $1,931.

*Home values climbed month over month
in all 50 of the nation’s largest metro areas
in May. Gains were biggest in Buffalo (2.1%),
Pittsburgh (1.9%), Cleveland (1.8%),
San Jose (1.8%), and Hartford (1.7%).

*The smallest monthly appreciation was in
Austin (0.2%), Tampa (0.3%), San Antonio
(0.3%), Orlando (0.3%), and New
Orleans (0.4%).

*Home values are up from year-ago levels
in 46 of the 50 largest metro areas. Annual
price gains are highest in San Jose (12.7%),
Hartford (11.6%), San Diego (11.1%),
Los Angeles (8.9%), and Boston (8.3%).

*Home values are down from year-ago levels
in three major metro areas. The largest drops
were in New Orleans (-5.9%), Austin (-4.1%),
and San Antonio (-2.2%).

*The typical mortgage payment is up 11.3%
from last year and has increased by
115.3% since pre-pandemic.

Inventory & New Listings

*New listings increased by 7.9% month over
month in May.

*There were 12.6% more new listings compared
to last year.

*New listings are still 23.3% lower than
pre-pandemic levels.

*Inventory (the number of listings active
at any time during the month) in May
increased by 7.4% from last month.

*There were 22.1% more listings active
in May compared to last year. Inventory
levels are 33.8% lower than pre-pandemic
levels for the month – the smallest deficit in
more than three years.

CROMFORD REPORT
*The Cromford Report is a detailed analysis of the
Phoenix Metro housing market. While many of our
partners & clients are in different areas, Phoenix
often starts housing trends and thus we think the
information is valuable regardless of your market*

Here is where the Phoenix Metro housing
market compares this year compared to
last year.

The story continues to be the same in
Phoenix Metro with a gradual move
towards more buyer- friendly conditions
with more homes coming on the market
and demand not high enough to keep
inventory from increasing.

Below is your weekly snapshot of Phoenix Metro housing.

Have a great week!