Weekly Mortgage Market Update for May 24, 2018

For the Week Ending May 24, 2018

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

Minutes released this week from last month's Fed meeting point to a policy rate increase in June. However, mortgage rates likely won't be affected.

Inflation is showing signs of increasing, but the Fed isn't too concerned yet. They indicated a temporary period of higher inflation would still be ok for the economy.

The labor market continues to tighten, with unemployment at a 17-year low of 3.9%. A strong labor market is supportive of a Fed rate increase in June.

Sales of new single-family homes fell slightly in April but were higher than expected. Economists blame the drop on lack of inventory.

Home prices continue to rise, according to the FHFA Housing Price Index. However, the rate of increase has slowed compared to previous months.

Mortgage applications were down again last week, but refinance applications were most affected. Purchase applications were still 3% higher than a year ago.

Today a man knocked on my door and asked for a small donation toward the local swimming pool. I gave him a glass of water.

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 candiffer from our own and are subject to change at any time.