Mortgage & Housing Update 4/14/2023

Mortgage & Housing Update 4/14/2023

My goal is to help you stay abreast of market trends. Tune in for my mortgage and housing update. 

Inflation a lot lower.

Both the Produce Price Index (PPI) and Consumer Price Index (CPI) dropped significantly in March. Look how much lower we are compared to the peaks (11.6%, 8.9%) set in 2022!

As  inflation continues to fall, mortgage rates will follow - especially if the economy moved into a recession and the Fed stops raising stop-term interest rates. 

When mortgage rates drop… buyers rush in. 

Average 30-yr fixed rate mortgages droppedd from just over 7% to nearly 6% over the course of March. Loan demand jumped. With inflation clearly trending lower, we could see rates below 6%. And if that happens, there will be a stampeded of buyers, more competition, and higher sales prices. 

Inflection point for home prices. 

About 1/3 of loan officers and real estate agents are seeing home prices increase in April. So it’s still not clear which direction home prices will go. But several reputable measures (FHFA, Corelogic) are showing mostly increases. The issue is inventory: the supply of homes for sale remains low. 

(source: List Reports)

Thank for tuning in. If you are ready to seek homeownership, reach out for a mortgage consultation. 

Pauline Lee | (508) 525-5415 | pauline@indmortgage.com | https://www.indmortgage.com/blog/mortgagehousingupdate2023414/

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