Weekly Mortgage Market Update for June 1, 2018

For the Week Ending June 1, 2018

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

First quarter economic growth was solid though slightly lower than expected at 2.2%. An improving economy can pressure rates higher.

Mortgage rates improved as overseas investors took to the safety of U.S. bonds. Political turmoil in Italy was the largest catalyst as their markets crashed.

Consumer spending increased in April, amid rising inflation. Inflation and a strong labor market will likely lead to a Fed rate increase at June's FOMC meeting.

Home price gains may be slowing down as mortgage rates creep up. March prices were unchanged compared to February, according to Case-Shiller.

Even still, values rose 6.5% nationally over last year. Housing prices are now 7.8% above their previous peak during the housing boom of 2006.

Pending home sales fell 1.3% in April compared to March. Most economists blame low inventory rather than slightly higher mortgage rates as the cause.

I used to be a banker, but then I lost interest.

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.