Affordability worsened in June compared to May as the median family income slightly declined by 1% while the median home prices rose by 4%.
Jobs are coming back, with 1.8 million net new additions in July, bringing the total to 9.3 million over the past three months as the economy has steadily reopened.
Layoffs fell to 1.2 million last week. This is a decrease of 249,000 from the previous week's revised level while hiring is picking up. That’s the lowest level of layoffs since the pandemic started.
Foreign buyers continued to pull back for the second year, purchasing $74 billion of U.S. existing homes from April 2019–March 2020, a 5% decrease from the prior 12-month period.
Interest rates dipped 11 basis points to 2.88% on a 30-year fixed-rate mortgage, continuing to hover at record-low levels. The rates may fall further over the next few weeks since the 10-year Treasury yields, off of which the government-backed mortgages are priced, retreated ever so slightly in past weeks.
REALTORS® expect to have more sales transactions in residential and industrial land sales in the third quarter.
The U.S. Census Bureau released its second-quarter GDP estimates and reported that personal consumption spending fell by nearly 35% on a seasonally adjusted annual rate.
June’s pending home sales pace increased 16.6% last month and rose 6.3% from a year ago. This would be the second consecutive month of gains as well as the first year over year incline since the virus’s impact on the housing market.
Layoffs are still happening with 1.4 million new filers for unemployment insurance, a slight increase of 12,000 from the prior week.
The housing market is hot because of lower mortgage rates, but the luxury market may remain soft due to jumbo loan issues.
Search Economists' Outlook