Record Drop in Price Growth - Mortgage Monitor

It will be a few weeks before we get the next installment of the bellwether home price indices (Case Shiller and FHFA), but today's Mortgage Monitor from Black Knight has an earlier look at June's results. Much like FHFA and Case Shiller, Black Knight's data for May had shown year-over-year appreciation that still looked reluctant to move too far under 20%. 19.3% was the official tally (Case Shiller was still over 20% and FHFA had fallen to 18.3%). Today's release shows a much sharper deceleration in June with the annual pace falling to 17.3%. While that's by far and away the largest decline since record-keeping began in the 1970s, there is at least one incredibly important caveat. Simply put, the price growth leading up to these declines also set records. As such, any remotely quick return to normalcy will end up producing huge declines. Moreover, let's not overlook the fact that 17.3% is still a staggeringly high year-over-year appreciation rate. It didn't even break above 15% during the housing boom in the mid 2000s that contributed to the financial crisis. Of course this is just the national average. Results vary widely by metro area, with several already more than 10% off their recent peak annual growth rate. The price decline speaks to the broader issues of affordability, both due to rampant post-pandemic appreciation and the abrupt surge toward higher mortgage rates in 2022. The net affect, unsurprisingly, is noticeable shift in inventory levels in certain metro areas. Some are back to 2017-2019 levels while the national average is still down more than 50%.

August 8, 2022 Download our Mobile App: Download our Mobile App: Housing News Record Drop in Price Growth - Mortgage Monitor It will be a few weeks before we get the next installment of the bellwether home price indices (Case Shiller and FHFA), but today's Mortgage Monitor from Black Knight has an earlier look at June's results. Much like FHFA and Case Shiller... (read more) Rob Chrisman Internal Audit, Marketing, Realtor-Facing, Fulfillment Products; Events and Training; Jobs and the Fed How much would you pay for a company responsible for a funny video? How ‘bout $1.7 billion bones? Amazon, catching the eye of the FTC, has made an offer to acquire Roomba maker iRobot for $1.7bn. (Speaking of household goods, I occasionally am asked ... (read more) Mortgage Rates Rates End Near Last Week's Highs After Data Swings For Fences 30 Yr. Fixed Rate 5.35% -0.10% Rate Change Points Mortgage News Daily 30 Yr. Fixed 5.35% -0.10 0.00 15 Yr. Fixed 4.78% -0.02 0.00 30 Yr. FHA 4.75% -0.21 0.00 30 Yr. Jumbo 4.75% 0.00 0.00 5/1 ARM 5.44% +0.06 0.00 30 Yr. VA 4.79% -0.18 0.00 Updates Daily - Last Update: 8/8 15 Yr. Fixed Rate 4.78% -0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 5.30% -0.40 0.80 15 Yr. Fixed 4.45% -0.38 0.80 5/1 Yr. ARM 4.19% -0.31 0.40 Updates Weekly - Last Update: 7/7 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 5.74% -0.08 0.61 15 Yr. Fixed 4.95% +0.07 0.67 30 Yr. Jumbo 5.32% +0.01 0.43 Updates Weekly - Last Update: 7/27 MBS / Treasuries UMBS 30YR 4.0 100.03 +0.42 Price / Yield Change MBS UMBS 4.0 100.03 +0.42 UMBS 4.5 101.28 +0.41 GNMA 4.0 100.73 +0.34 GNMA 4.5 101.55 +0.33 Pricing as of: 8/8 5:21PM EST 10 Year US Treasury 2.7536 -0.0732 Price / Yield Change US Treasury 2 YR Treasury 3.209 -0.020 5 YR Treasury 2.908 -0.049 7 YR Treasury 2.844 -0.058 10 YR Treasury 2.754 -0.073 30 YR Treasury 2.980 -0.086 Pricing as of: 8/8 5:21PM EST Latest Video NY Fed consumer expectation survey shows inflation expectations plunged in ... Fed's goal is soft-landing that brings demand down, says Booth School's Ran... The 9am Bond Report: August 8, 2022 The Week Ahead: More CPI data on the way Around the Web CNBC Consumer confidence in the housing market just hit the lowest point in over a decade Calculated Risk Blog August 8th Update: Housing Inventory Increases Slow Calculated Risk Blog Housing Inventory Growth Has Slowed in Recent Weeks yahoo finance Blackstone is preparing a record $50 billion vehicle to scoop up real estate Calculated Risk Blog Four High Frequency Indicators for the Economy CNBC U.S. Treasury yields fall as investors weigh Fed rate hike outlook Calculated Risk Blog New Home Cancellations increased Sharply in Q2 Eye on Housing June Job Openings and Monetary Policy Considerations CNBC Payrolls increased 528,000 in July, much better than expected in a sign of strength for jobs market Calculated Risk Blog Comments on July Employment Report Calculated Risk Blog Used Vehicle Wholesale Prices Decreased 0.1% in July Eye on Housing Headship Stabilizes During the Pandemic Housing Boom Wall Street Journal U.S. to Report July Jobs Data Amid Rate Rises, Inflation

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