05/22/2024
These past couple of weeks have started to show some cracks in the economy that many knew were already there. It certainly has had an impact on rates in a positive way. As indicated in earlier posts, there remains nearly 4+ million buyers sitting on the sidelines waiting to buy. Either waiting for inventory or affordability, these buyers will come out as the interest rates fall causing increased competition in the housing market. Watch the data carefully, get a solid pre-approval from an experienced Loan Officer and partner with a knowledgeable Real Estate Agent.
HOUSING NEWS
Rates keep falling: Average mortgage rates fell 0.7% last week, continuing a positive month of May.
Shelter costs: Up 5.5% despite easing overall inflation.
Builder confidence low: Higher mortgage rates sent builder sentiment plummeting in April.
Finishes and starts: April housing completions surged 10.4%, while starts rose only a modest 5.7%. Permits declined.
ECONOMIC NEWS
Inflation cools: April's consumer price report showed a 0.3% monthly increase and a 3.4% annual pace, indicating a slight easing in inflation.
Hot home prices: Along with energy, shelter prices, up 5.5%, were the primary price gainers.
Retail flat: April retail sales were flat month over month, but up 3% from a year ago.
