Home borrowing costs fell this week but remain well above levels seen earlier this year. Freddie Mac reports that the 30-year fixed-rate mortgage fell to 5.70% this week from 5.81% last week with an average of 0.8 in points and fees. A year ago the rate was 2.98%. The 15-year inched declined to 4.83% from 4.92% with a 0.9 point. A year ago that 15-year was 2.26%. Sam Khater, Freddie Mac’s Chief Economist said, "This pause in rate activity should help the housing market rebalance from the breakneck growth of a seller’s market to a more normal pace of home price appreciation."
The Fed's favorite inflation gauge, the Core PCE, rose 4.7% year over year in May, just below the 4.8% expected and down from 4.9% in April. Monthly, the Core PCE rose 0.3% versus 0.4% expected matching April's number. Personal Income rose 0.5% matching both expectations and the April number while Personal Spending was up 0.5% versus 0.5% expected and matching April's number.
In other economic news, Weekly Initial Jobless Claims rose 2,000 to 231,000 for the week ended June 24. Continuing claims inched lower to 1.328 million from 1.1331 million. The Chicago PMI in June declined to 56 from 60.3 in May and below expectations of 58. It was the lowest reading since August of 2020. And from what's happening in the stock markets, the closely watched S&P 500 is on track to close out its worst first half in 52 years.