Mortgage & Housing Update 7/14/2023

Mortgage & Housing Update 7/14/2023

Great news! Not even the Fed can deny that inflation is fading fast with CPI dropping to +3.0% YoY and PPI plunging to +0.1% YoY in June. 

Mortgage rates responded, moving back into the 6% range. 

If you're thinking about buying, don't forget that homeownership is more than just a great investment. I am happy to help you determine your mortgage options. 

Inflation Moves Lower

The Consumer Price Index (CPI, which measures inflation for consumers) dropped more than expected, from annualized +4.0% YoY in May to +3.0% YoY in June. 

The Producer Price Index (PPI, which measures inflation for businesses) fell from +0.9% YoY in May to +0.1% YoY in June, basically flat. 

Both the CPI and PPI are down massively from their peaks, but the Fed is still expected to raise rates by another 25 bps on July 26. 

Back into the 6's

Not surprisingly, the bond market reacted positively to the lower inflation (CPI/PPI) data. Average 30-year mortgage rates moved below 7% for the first time since mid-June. 

Housing Survey

MBS Highway’s July Housing Survey saw a pullback in buyer activity again. This wasn’t a surprise. With mortgage rates above 7% during the survey period, and inventory levels failing to grow during the spring selling season. 

That said, Demand isn’t the problem. Availability (inventory) and affordability (mortgage rates) are the real issues. 

The Northeast region continue to be the winner, with high buyer activity, upwards pricing pressure and rapid pace of sales. However the Midwest and Mid-Atlantic regions aren’t far behind. And it’s worth highlighting that the hard-hit West region has dramatically recovered. 

Home Prices are Rising 

According to Black Knight, “There is no doubt that the housing market has reignited from a home price perspective. The pull back tracked through the last half of 2022 is now fully erased. More than 1/2 of the 50 largest markets are seeing prices at or above their 2022 peaks.”

3 Reasons to Own Your Home

A home is more than just a great investment. Homeownership also gives you... 

  • Stability: you don’t have to move if your landlord decides to sell the house.
  • Predicability: your monthly mortgage payment won’t change, but your rent sure will 
  • Flexibility: it’s YOUR home, so you don’t have to ask permission to paint the walls or add a pool. 

(source: List Reports)

If you are ready to learn more the mortgage options best fit for you, I am happy to help. I encourage you to get pre-approved. | (617) 965-1988 x205 |

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.