In the previous week, Fannie Mae’s National Housing Survey unveiled its findings, along with the weekly updates on mortgage rates and jobless claims.
Fannie Mae’s survey revealed a decline in home buyer confidence regarding the housing market conditions in May. Prospective home buyers faced challenges due to high home prices and increasing mortgage rates, while sellers enjoyed favorable conditions. According to Fannie Mae’s Home Purchase Sentiment Index, 65 percent of consumers surveyed believed it was a good time to sell their homes, compared to 62 percent in April. This marked the highest consumer sentiment reading for the index since July 2022.
Mr. Mark Palim, Fannie Mae’s Vice President and Deputy Chief Economist, commented on the survey, stating that consumers also expressed a lack of expectation for improved affordability in the near future. Additionally, 81 percent of surveyed renters believed that obtaining a mortgage in the present day would be difficult.
During the same week, Freddie Mac reported a decrease in mortgage rates, following three consecutive weeks of increases. The average rate for 30-year fixed-rate mortgages dropped by eight basis points to 6.71 percent. Rates for 15-year fixed-rate mortgages also saw a decline, averaging 6.07 percent and 11 basis points lower.
Jobless claims experienced a rise, with 261,000 initial claims filed, surpassing the expected reading of 236,000 first-time claims. This figure also exceeded the previous week’s reading of 233,000 filings.
Looking ahead, this week’s economic news will include the Federal Open Market Committee Statement from The Fed, accompanied by a scheduled press conference by Fed Chair Jerome Powell. The University of Michigan will release its monthly report on consumer sentiment, and there will also be weekly updates on mortgage rates and first-time jobless claims.
