Weekly Mortgage Market Update for June 2, 2017

For the Week Ending June 2, 2017

Please enjoy this quick update on what happened this week in the housing and financial markets.

The Consumer Confidence Index, which had decreased in April, fell again slightly in May. However, consumers remain optimistic about the economy on the whole.

Consumer spending recorded its biggest increase in 4 months in April, and monthly inflation rebounded. Inflation pressures mortgage rates to move higher.

The Fed sees the economy expanding at a "modest to moderate" pace through May, strengthening the case that a policy rate hike at the June meeting is likely.

Case-Shiller reports the inventory of homes for sale remains "unusually low," driving up values. Prices continued to rise in March, reaching a 33-month high.

Pending home sales were down slightly in April, according to NAR. Demand remains high, but the low inventory is causing a bottleneck in sales.

One factor that may be adding to inventory woes is the failure of investors to sell. Many homes that were purchased during the downturn are now rentals.

My neighbors always leave their sprinklers on, which is a bit annoying. I guess you could say it's a source of constant irrigation.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.