Market News 6-25-2020
Mortgage Market Update
Mortgage rates continue to hover at record lows, and the FHFA reports April home values up 5.5% over last year. Low rates and strong prices create opportunities for homebuyers and owners. The International Monetary Fund now expects the U.S. economy to contract by 8% this year, more than the 5% they forecast in April. Negative growth can keep rates low. Initial jobless claims were 1.48 million last week, lower than the previous week but above expectations. Continuing claims declined more than expected to 19.5 million.
The NAR expects home sales to climb as in-person showings return. With the nationwide lockdown, May’s existing home sales fell 9.7% from April and 26% annually. Sales of newly built homes jumped far more than expected in May, up nearly 13% annually. After slowing dramatically in March, they posted the strongest May pace since 2007. However, May’s single-family housing starts were nearly 18% lower annually, and building permits, an indicator of future construction, were down about 10%.