On Friday, the University of Michigan released its Preliminary Consumer Sentiment Index for June. The Index of Consumer Sentiment dropped to a reading of 50.2 in June, down from May’s reading of 58.4, This is a month-over-month decrease of -14.0% and down -41.3% year-over-year (85.5 in June 2021).
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Mortgage Credit Availability Declined for the Third Consecutive Month in May 2022
According to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI) report, which analyzes data from the ICE Mortgage Technology, Mortgage credit availability declined in May 2022. The MCAI declined -0.9% to a reading of 120.0.
Typical U.S. Monthly Rent Surpasses $2,000 in May, Setting New All-Time High
Redfin, the Seattle-based, technology-powered real estate brokerage firm, is reporting that in May, for the first time ever, the median monthly asking rent in the U.S. surpassed $2,000. This is a year-over-year increase of 15%.
Mortgage Rates Resume Upward Climb in the Week Ending June 9, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending June 9, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 5.23% with an average 0.9 point, up from last week when it averaged 5.09%.
Weekly Jobless Claims Climb Higher in the Week Ending June 4, 2022
The U.S. Department of Labor is reporting that an additional 229,000 Americans (seasonally adjusted) made their initial filing for unemployment benefits during the week ending on Saturday, June 4, 2022. This is increase of 27,000 from the previous week’s unrevised level.
Mortgage Applications Drop for the Sixth Consecutive Week in the Week Ending June 3, 2022
According to data from the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending June 3, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -6.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined -17.0% compared with the previous week.
Single-Family Residential Construction Slowed in the Suburbs in Q1 of 2022
According to the National Association of Home Builders’ Home Building Geography Index for Q1 of 2022, single-family residential home building slowed in the suburbs, with most other regional areas following suit. This decrease follows the aftermath of the pandemic and home buyers’ preferences to live in the suburbs easing.
Fannie Mae’s Home Purchase Sentiment Index® Lower Month-Over-Month & Year-Over-Year in May 2022
Fannie Mae today (6-7-22) released its Home Purchase Sentiment Index® (HPSI) for May. The HPSI declined in May by -0.3 points to a reading of 68.2. The index is now closer to its 10-year and pandemic-low of 63.0, recorded in April of 2020. Year-over-year (May 2021 – May 2022) the HPSI is down 11.8 points.
Buyers Regained Some Control Over the Housing Market in the Month of May
Redfin is reporting that the month of May marked a turning point in the pandemic housing craze, as buyers regained some control over the housing market. However, the increased sense of buyer control came with a great cost, as 5%+ mortgage rates and record-high prices have eliminated many buyers from the market.
Median Mortgage Payments Jump 8.8% Month-Over-Month in April 2022
The latest data from the Mortgage Bankers Association’s Purchase Applications Payment Index (PAPI) reveals that the median monthly payment for a new mortgage in April rose 8.8% to $1,889, up from March when it was $1,736. The national PAPI increased 7.8% to a reading of 162.7 in April, up from March’s reading of 150.9.