Home Prices Hit New Peaks Despite Affordability Issues

The Black Knight Mortgage Monitor for May doesn’t even hint at a housing crisis on the horizon. Affordability is again (or maybe still) a concern, but buyers are out there, and home prices reflect that fact. Homeowners are performing well on their mortgages (and aren’t about to give up their low rates), and while the current report doesn’t touch on the subject, continue to build on their equity. In addition, builders are getting back in the game, shoring up hope of a lessening in the perennial shortage of available homes. Home prices, which eased late last year have now risen for five straight months, completely reversing the earlier declines. Black Knight says its Home Price Index hit an all-time high, rising 0.7 percent from April to May. While the year-over-year growth rate is currently hovering at 0.1 percent, the May increase is equivalent to annualized growth of 8.9 percent. If the recent pattern continues, that annual growth rate may turn and begin trending higher as early as next month. Twenty-seven of the 50 largest U.S. markets have returned to their previous price peaks or set new ones this spring. Even the West Coast, where some of the largest downward corrections happened last year, saw many of its markets reheat in May. San Jose was up 1.4 percent, Los Angeles rose 1.0 percent, and Seattle gained 0.9 percent. Austin, Texas is a major exception to the price hikes. The deficit from its peak continues to grow, reaching -13.8 percent in May.

July 10, 2023 Download our Mobile App: Download our Mobile App: Housing News Home Prices Hit New Peaks Despite Affordability Issues The Black Knight Mortgage Monitor for May doesn’t even hint at a housing crisis on the horizon. Affordability is again (or maybe still) a concern, but buyers are out there, and home prices reflect that fact. Homeowners are performing well on thei... (read more) Mortgage Rate Watch Rates Remain Over 7% Despite Modest Improvement The most important thing to know about mortgage rates so far this week is that they lived through last week. Living through last week means rates reacted to surprisingly strong economic data by jumping well into the 7% range for conventional 30... (read more) MBS Commentary Sideways at Weak Levels Despite Monday's Rally Sideways at Weak Levels Despite Monday's Rally If we wanted to make the case for anything about the first two days of this week being interesting, we'd be forced to lie. We could say grandiose things th... (read more) Rob Chrisman Broker and LO Scorecards, Escrow Mgt., Homebuyer Products; How Many Borrowers are at Less Than 4 Percent? “The world is going to come to an end tonight at midnight. Tune in tomorrow to see if it did!” Sensationalist headlines or bad predictions are tiresome at best, misinformation at worst. There is actual news, however. For example, thank you to the Kno... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.12% -0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.12% -0.02 0.00 15 Yr. Fixed 6.45% -0.05 0.00 30 Yr. FHA 6.82% -0.03 0.00 30 Yr. Jumbo 6.94% -0.01 0.00 5/1 ARM 7.12% +0.02 0.00 30 Yr. VA 6.80% -0.02 0.00 Updates Daily - Last Update: 7/10 15 Yr. Fixed Rate 6.45% -0.05% Rate Change Points Freddie Mac 30 Yr. Fixed 6.81% +0.10 0.00 15 Yr. Fixed 6.24% +0.18 0.00 Updates Weekly - Last Update: 7/6 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.75% +0.02 0.64 15 Yr. Fixed 6.23% -0.03 0.69 30 Yr. Jumbo 6.91% +0.11 0.69 Updates Weekly - Last Update: 6/28 MBS / Treasuries UMBS 30YR 5.5 98.78 +0.44 Price / Yield Change MBS UMBS 5.5 98.78 +0.44 UMBS 6.0 100.34 +0.33 GNMA 5.5 98.77 +0.34 GNMA 6.0 100.19 +0.20 Pricing as of: 7/10 5:31PM EST 10 Year US Treasury 4.0040 -0.0620 Price / Yield Change US Treasury 2 YR Treasury 4.866 -0.084 5 YR Treasury 4.243 -0.115 7 YR Treasury 4.139 -0.091 10 YR Treasury 4.004 -0.062 30 YR Treasury 4.042 -0.005 Pricing as of: 7/10 5:31PM EST Latest Video Inflation will have to be closer to 3% than 4.5% for Fed to pivot, says for... Affordability strains in housing are benefiting single-family REITs, says M... Two financial experts discuss the Fed's next steps and the future of the U.... May wholesale inventories comes in unchanged Around the Web CNBC This is 'the end of the beginning' of the battle against inflation, economist says Eye on Housing Share of Two or More Stories New Homes Maintains Lead in 2022 Calculated Risk Blog Lawler: Update on Demographic Trends, and Population and Household Projections Through 2025 CNBC Federal student loan repayment is about to change in a big way. What borrowers need to know CNBC Treasury yields mixed as investors look to Fed speaker comments, key economic data CNBC Fed's Goolsbee sees 'golden path' to lower inflation without a recession Calculated Risk Blog Wholesale Used Car Prices Decreased 4.2% in June; Down 10.3% Year-over-year Marketwatch July Fed rate hike remains largely priced in, expectations for September or November hike soften somewhat Calculated Risk Blog Housing July 10th Weekly Update: Inventory Decreased 0.2% Week-over-week; Down 4.6% Year-over-year Calculated Risk Blog Comments on June Employment Report Reuters June US jobs growth cools, but wages won't comfort Fed CNBC European markets set for lower open after China's low inflation reading Calculated Risk Blog Heavy Truck Sales Up 15% Year-over-year in June

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