Rates Drop as Homebuyer Competition Mellows

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April Housing Starts fell 0.2% from March to an annual rate of 1.724 million units versus 1.765 million expected. Starts were up 14.6% from a year ago. Building Permits dropped 3.2% to 1.819 million versus 1.812 million. Single-family starts rose 3.7% annually and were down 7.3% monthly. Multi-family dwellings soared nearly 43% annually up 17% monthly. Sales fell across the four major regions of the country.

Mortgage rates fell in the latest week after pushing higher since the beginning of the year. The 30-year fixed-rate mortgage fell 5.49% from 5.53% with 0.74 points for the week ended May 13, 2022, reports the MBA. Within the data it showed that the Market Composite Index, a measure of total mortgage application volume, declined 11%, the Refinance Index fell 10% and the Purchase Index saw a 12% drop. Spokesperson Joel Kan said, "General uncertainty about the near-term economic outlook, as well as recent stock market volatility, may be causing some households to delay their home search."

Homebuyer competition falls for the second-straight month, hitting lowest level in over a year, reports Redfin. The technology-powered real estate brokerage reported that 61% of home offers faced bidding wars in April, down from 63% a month earlier and down from 67% a year earlier as higher borrowing costs pushed buyers to drop out. “The meteoric rise in mortgage rates is prompting more house hunters to back out of the market, causing competition to cool,” said Redfin Chief Economist Daryl Fairweather.


Housing starts fall. Mortgage rates inch lower. Homebuyer competition declines.

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