Walden Mortgage Weekly Newsletter: The Housing Market Update
Home Prices Rise for Fourth Straight Month:
Home prices rose for the fourth month in a row in May, suggesting the recovery in the housing market continued to gain traction.
The S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.9 percent in May from April on a seasonally adjusted basis, topping economists’ expectations for a 0.5 percent gain.
On a non-seasonally adjusted basis, prices fared even better, jumping 2.2 percent. Compared to a year ago, price declines moderated to slip 0.7 percent, the smallest drop since the last time year-over-year prices rose in September 2010.
The housing market, which collapsed during the 2007-2009 recession, has been a relative bright spot in the economy this year. Mortgage rates continue to hover near all-time lows, Consumer Confidence is up and many Realtors are reporting a shortage of supply as home inventory levels continue to fall. All of these factors point towards some positive momentum in the housing sector.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) lost -7 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move higher.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.
We will be watching these reports closely for you and let you know if there are any big surprises: