TODAY’S RATES & HOUSING NEWS
Interest Rates improved slightly over the last 7 days, mainly boosted by a +44 bps trading day of Mortgage Backed Securities (MBS) on Tuesday 8/29/23.
MBS is trading a bit down since Friday taking back some of the gains earlier last week.
The Friday BLS Jobs Report was the big event that everyone was paying attention to last week.
There were 187,000 jobs created in August, which beat the estimates of 170,000.
The item that is a bit frustrating from a mortgage standpoint is rates are reacting to the job creation number verses expectations, but not reacting to the negative revisions that keep coming in from previous months.
Although job creation beat estimates by 17,000 in August (this number will likely come down with revisions), June 2023 was lowered 80,000 jobs from 185,000 to 105,000.
July 2023 was lowered 30,000 jobs from 187,000 to 157,000.
So jobs actually went down 110,000 in June and July and the market barely takes notice of the revisions.
Lower jobs numbers helps rates improve while also increasing the likelihood that the FED will not raise the Federal Funds Rate in their next session.
Below is Mortgage News Daily’s average rates across America as of 9/1/23.
Below is Green Home Loans rate sheet today.
There are a lot of characteristics that go into a mortgage rate – credit score, investor, loan to value, loan amount, costs, etc.
Please call me to go over your specific scenario so we can price your loan out accurately.
HOME PRICES RISE FOR 5TH STRAIGHT MONTH
Home prices rose .65% month over month in June 2023 according to the Case Shiller Home Price Index.
Year over year appreciation was flat.
The year over year number is interesting as home prices hit their peak in June 2022.
Home prices declined in the latter half of 2022, but have risen throughout 2023.
This means that 2023 has taken back all the losses from 2022 and we will likely break new records next month.
Home prices continue to dance with higher mortgage rates and low inventory.
Higher rates are tampering demand, but low inventory is keeping down supply.
Supply is winning in 2023 as home prices are increasing despite lower demand.
Here is the Case-Shiller month over month and year over year numbers in their 20 city composite.
MONTH OVER MONTH 20 CITY COMPOSITE:
- Cleveland +1.54%
- Chicago +1.39%
- Miami +1.36%
- Boston +1.27%
- Atlanta +1.27%
- Charlotte +1.24%
- Phoenix +1.13%
- San Diego +1.12%
- Detroit +1.06%
- New York +1.06%
- Minneapolis 1.04%
- Las Vegas +0.94%
- Los Angeles +0.86%
- Seattle +0.84%
- Portland +0.77%
- Washington +0.72%
- Dallas +0.71%
- Tampa +0.48%
- Denver +0.43%
- San Francisco +0.15%
YEAR OVER YEAR 20 CITY COMPOSITE:
- Chicago +4.2%
- Cleveland +4.1%
- New York +3.4%
- Miami +2.5%
- Detroit +2.2%
- Atlanta +2.1%
- Charlotte +1.7%
- Boston +0.9%
- Minneapolis +0.7%
- Washington +0.6%
- Tampa -0.9%
- Los Angeles -1.9%
- San Diego -2.5%
- Dallas -4.1%
- Portland -4.2%
- Denver -4.4%
- Phoenix -7.5%
- Las Vegas -8.2%
- Seattle -8.8%
- San Francisco -9.7%
Below is the Case-Shiller Home Price index since 2000.