Home borrowing costs were essentially unchanged last week and remain at historically low levels. The Mortgage Bankers Association reports that the 30-year fixed-rate mortgage slipped to 3.15% with 0.34 in points for the week ending June 4, 2021. The Market Composite Index fell 3.1%, the Purchase Index rose 0.3% while the Refinance Index declined by 5.1%. 30-yr fixed-rate mortgage -2bp to 3.15% with 0.36 in points. Spokesperson Joel Kan said, "With fewer homeowners able to take advantage of lower rates, the refinance share dipped to the lowest level since April."
After the meteoric rise in lumber prices over the past year, the cost has started to decline much to the delight of homebuilders. It hit $1,700 in May and it closed at $1,167 yesterday. As supply constraints come undone after the pandemic has passed, more products will come to market and could ease the price increases. One commodity that is not falling is the price of oil. West Texas Intermediate oil is at $70.50/barrel, a near three-year high. This has lifted the national average price for a regular gallon of gasoline to $3.06. If this rise continues continues it would serve as a tax on consumers and curtail spending.
Home borrowing costs remain low. Home refinancing slips. Lumber prices yell, TIMBER!