Home borrowing costs fell again this week after the significant rise seen since a year ago. Freddie Mac reports that the 30-year fixed-rate mortgage slipped to 5.10% from 5.25% last week with an average of 0.9 in points and fees. A year ago the rate was 2.95%. The 15-year fell to 4.31% from 4.43% with a 0.8 point. A year ago that 15-year was 2.27%. Sam Khater, Freddie Mac’s Chief Economist said, "Despite the recent moderation in rates, the housing market has clearly slowed, and the deceleration is spreading to other segments of the economy, such as consumer spending on durable goods."
In economic news, the second read on Q2 2022 Gross Domestic Product came in at -1.5% versus -1.3% expected and down from the first read of -1.4%. Within the GDP data, it showed that consumer prices (inflation) increased from the initial reading. Tomorrow, the Fed's favorite inflation gauge, the Core PCE, will be released. Weekly Initial Jobless Claims fell to 210,000 from 218,000. April Pending Home Sales fell 3.9% from the decline of 1.6% in March.
Redfin reports nearly 1 in 5 sellers is dropping their price, the highest rate since October 2019 during the four week period ending May 22. The technology powered real estate brokerage went on to say that its seasonally-adjusted Redfin Homebuyer Demand Index, a measure of requests for home tours and other home-buying services from Redfin agents, fell 12% year over year during the week ending May 22. This was the largest decrease since April 2020 when the shutdowns halted most homebuying activity.
Home borrowing costs decline. Q2 2022 GDP worsens. Home sellers dropping prices.
Home borrowing costs fell again this week after the significant rise seen since a year ago. The second read on Q2 2022 Gross Domestic Product came in at -1.5% versus -1.3% expected and down from the first read of -1.4%. Redfin reports nearly 1 in 5 sellers is dropping their price, the highest rate since October 2019 during the four week period ending May 22.
Freddie Mac reports that the 30-year fixed-rate mortgage slipped to 5.10% from 5.25% last week with an average of 0.9 in points and fees. The second read on Q2 2022 Gross Domestic Product came in at -1.5% versus -1.3% expected and down from the first read of -1.4%. Redfin reports nearly 1 in 5 sellers is dropping their price, the highest rate since October 2019 during the four week period ending May 22.
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