Mortgage rates slightly rose to 5.54%, and will continue to increase next week, as the Fed will likely raise interest rates by a full percentage point.
Homebuilders have become extremely cautious about the prospect of single-family home sales, while multifamily activity remains robust.
With the potential of a more aggressive rate hike from the Federal Reserve at the end of the month, mortgage rates will likely rise even further.
Consumer price inflation is the highest in over 40-years and showed no sign of slowing down in June. It rose by 9.1% and is accelerating.
Compared to one year ago, affordability fell in May as the monthly mortgage payment climbed 51% and median family income rose by 4.5%.
Mortgage rates will be higher next week as the job market continues to expand.
The dual phenomenon of record-high home prices and record-low inventory has significantly impacted home buyer choice.
The 30-year fixed mortgage rate dropped sharply by 40 basis points to 5.3 percent from 5.7 percent the previous week. As a result, home buying is about 5 percent more affordable than a week ago.
The 30-year fixed mortgage rate dropped to 5.7% from 5.81% the previous week. Although rates are significantly higher than last year, they are still historically low, remaining below 6%.
Mortgage rates showed little movement this week, remaining below 6%. However, since the beginning of the year, home buying has cost about $800 more every month.
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